The Commonwealth of Massachusetts

Home , Caspar Bowden, Ian Goldberg, Roger Dingledine, Wendy Seltzer

Office Use Only: Fiscal Year The Commonwealth of Massachusetts OFFICE OF THE ATTORNEY GENERAL NON‐PROFIT ORGANIZATIONS/PUBLIC CHARITIES DIVISION ONE ASHBURTON PLACE BOSTON, MASSACHUSETTS 02108 (617) 727‐2200, ext. 2101 www.mass.gov/ago/charities

Form PC Check all items attached Report for the Fiscal Period: 01/01/14 to 12/31/14 (if applicable) X Schedule A‐1 Attorney General's Account #: 046444 X Schedule A‐2 Schedule RO Federal ID #: 20‐8096820 Probate Account X Copy of IRS Return When did the organization first engage in X Audited Financial charitable work in Massachusetts? 01/01/2007 Statements/Review X Filing Fee Has the organization applied for or been granted Amended Articles/ IRS tax exempt status? X Yes No By‐Laws

If yes, date of application OR date of determination letter: 02/26/2007

IRS Exemption under 501(c): 3 If exempt under 501(c), are contributions to the organization tax deductible as charitable contributions? X Yes No

Organization Data

Name: THE TOR PROJECT, INC.

Mailing Address: 7 TEMPLE STREET, SUITE A

City: CAMBRIDGE State: MA ZIP: 02139

Phone Number: (781) 769‐7555 Fax Number:

Email: Website: WWW.TORPROJECT.ORG

In the table below, please enter the appropriate codes from the corresponding tables found in the instructions. Enter up to 2 codes from Table 3 for your organization's main purpose(s)

Category Code Category Code

County (Table 1) 11 Organization Purpose Code 1 55

Type of Organization (Table 2) 21 Organization Purpose Code 2

Please check box if final return prior to dissolution:

Office Use Only: Payment Received Form PC Page 1 of 14 478001 05‐01‐14 1 THE TOR PROJECT, INC. 20‐8096820 All questions must be completed in their entirety whether or not similar questions are answered in an attached federal form. See instructions and definition section for guidance.

1. On what date was the organization created? 12/22/2006

2. Where was the organization created? MASSACHUSETTS

3. What is the form of organization? (check one)

Corporation X Testamentary Trust

Unincorporated Association Inter Vivos Trust

Other (please describe):

4. Was your organization related to any other organization(s) during the reporting year (see definition of "Related Organization")? If yes, please complete the Schedule RO on pages 13 and 14. Yes X No

5. Enter your summary of financial data:

Financial Data Amounts

A. Contributions, gifts, grants, and similar amounts received 288,667.

B. Gross support and revenue 2,556,397.

C. Program services and similar amounts paid out 2,344,084.

D. Fundraising expenses 30,954.

E. Management and general expenses 143,506.

F. Payments to affiliates 0.

G. Total expenses 2,518,544.

H. Net assets or fund balances at the end of the year 1,476,833.

6. List the total compensation you provided to your five highest paid employees:

Hrs/ Salary and Other Name/Title Benefit Plans Week Other Income Compensation ANDREW LEWMAN 1. CLERK, TREAS., EXEC. DIR. 40.00 150,000. 3,000. 18,700. KARSTEN LOESING 2. DEVELOPER 40.00 119,256. 0. 22,615. NICK MATHEWSON 3. CHIEF ARCHITECT 40.00 135,000. 0. 18,675. ROGER DINGLEDINE 4. RESEARCH DIRECTOR 40.00 135,000. 2,700. 5,519. ANDREA SHEPARD 5. DEVELOPER 40.00 125,004. 0. 2,953.

7. Was any compensation provided to any of the individuals listed in question 6 above which was not quantified in your response to 6? If yes, please provide explanation (attach separate sheet). Yes X No

Form PC Page 2 of 14 Rev. 02/2010 478002 10‐14‐14 2 THE TOR PROJECT, INC. 20‐8096820 8. List the name, amount of compensation paid, and the nature of services rendered by each of the organization's five highest paid consultants providing professional services (e.g. attorneys, architects, accountants, management companies, investment advisors, professional solicitors, professional fundraising counsel).

Name/Title Amount of Compensation Type(s) of Service

1. PEARL CRESCENT, LLC 100,725.DEVELOPER

2. NICOLAS VIGIER 87,495.DEVELOPER

3. GEORG KOPPEN 78,581.DEVELOPER

4. 3BIS 71,279.DEVELOPER

5. GEORGE KADIANAKIS 58,968.DEVELOPER

9. Bank(s) in which the organization's funds are deposited (include bank addresses and phone numbers):

Bank Address Phone Number

DEDHAM SAVINGS BANK 55 ELM STREET, DEDHAM, MA 02026 781‐329‐6700 2 MORRISSEY BLVD, DORCHESTER, MA SANTANDER BANK 02125 617‐379‐4017 200 TECHNOLOGY SQUARE, CAMBRIDGE, CITI BANK MA 02139 617‐800‐0856

10. What is the organization's accounting method? Cash X Accrual

Other (specify):

11. If organization's mailing address is a P.O. Box, list the organization's full street address:

Address:

City: State: ZIP Code:

12. Contact Person Name: MEREDITH DUNN

Street Address: 7 TEMPLE STREET, SUITE A

City: CAMBRIDGE State: MA ZIP Code: 02139

Phone Number: 781‐769‐7555

Form PC Page 3 of 14 Rev. 02/2010 478003 10‐14‐14 3 THE TOR PROJECT, INC. 20‐8096820 13. During the fiscal year reported here, did your organization solicit contributions or have funds solicited on its behalf? X Yes No

14. At any time during the fiscal year following the year reported here, will your organization, or others acting on its behalf, solicit contributions? X Yes No If you answered yes to Question 13 or 14, you must complete Schedule A‐1 and/or Schedule A‐2 unless you are exempt from the solicitation certificate requirement.

15. If you are claiming an exemption from the solicitation certificate requirement, please indicate by checking the box to the right to identify which exemption applies to your organization.

a religious organization an organization which: (a) does not raise more than $5,000 during a calendar year OR does not receive contributions from more than ten persons during a calendar year; AND (b) carries out all of its activities, including fundraising, through unpaid volunteers. (The conditions at both (a) and (b) must be met for your organization to qualify for this exemption.)

16. Attach a list of names, addresses (street and/or mailing), and telephone numbers of other offices/chapters/branches/affiliates.

17. Attach a list of names, titles, and addresses (street and/or mailing) of officers, directors, trustees, and the principal salaried executives of organization. STATEMENT 1 18. Attach a list of names, titles, and addresses (street and/or mailing) of any individual(s) authorized to sign checks, and any individual(s) responsible for: custody of funds; distribution of funds; fundraising; and custody of financial records. STATEMENT 2 19. Has this organization or any of its officers, directors, employees or fundraisers solicited funds in any Yes X No other state?

If you attach list of states where solicitation was conducted, including registered agency, dates of registration, registration numbers, any other names under which the organization was/is registered, and the dates and type (mail, telephone, door to door, special events, etc.) of the solicitation conducted.

Form PC Page 4 of 14 Rev. 02/2010 478004 05‐01‐14 4 THE TOR PROJECT, INC. 20‐8096820 }}}}}}}}}}}}}}}}}}}}} }}}}}}}}}} ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ FORM PC OFFICERS, DIRECTORS, TRUSTEES AND EXECUTIVES STATEMENT 1 }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}

NAME AND ADDRESS TITLE }}}}}}}}}}}}}}}} }}}}} ANDREW LEWMAN TREAS/CLERK/EXEC DIR 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

NICK MATHEWSON V.P./CHIEF ARCHITECT 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

ROGER DINGLEDINE PRES/RESEARCH DIRECTOR 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

IAN GOLDBERG CHAIRMAN/DIRECTOR 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

WENDY SELTZER DIRECTOR 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

MEREDITH DUNN DIRECTOR 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

CASPAR BOWDEN DIRECTOR 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

ROB THOMAS DIRECTOR 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

5 STATEMENT(S) 1 THE TOR PROJECT, INC. 20‐8096820 }}}}}}}}}}}}}}}}}}}}} }}}}}}}}}} ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ FORM PC PAGE 4, LINE 18 STATEMENT 2 }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}

NAME AND ADDRESS AREA OF RESPONSIBILITY }}}}}}}}}}}}}}}} }}}}}}}}}}}}}}}}}}}}}} ANDREW LEWMAN RESPONSIBLE FOR CUSTODY OF FUNDS 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

ANDREW LEWMAN RESPONSIBLE FOR DISTRIBUTION OF FUNDS 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

ANDREW LEWMAN RESPONSIBLE FOR FUNDRAISING 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

KAREN REILLY RESPONSIBLE FOR FUNDRAISING 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

MELISSA GILROY CUSTODY OF FINANCIAL RECORDS 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

ANDREW LEWMAN CUSTODY OF FINANCIAL RECORDS 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

ANDREW LEWMAN AUTHORIZED TO SIGN CHECKS 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

ROGER DINGLEDINE AUTHORIZED TO SIGN CHECKS 7 TEMPLE STREET, SUITE A CAMBRIDGE, MA 02139

6 STATEMENT(S) 2 THE TOR PROJECT, INC. 20‐8096820 20. Has this organization or any of its officers, directors, or employees: If yes, please attach an explanation.

(a) Been enjoined or otherwise prohibited by a government agency/court from operating or soliciting contributions? Yes X No

(b) Ever been refused registration or had its registration or tax exemption denied, suspended, modified or revoked by a governmental agency? Yes X No

(d) Entered into a voluntary agreement of compliance or consent judgment with any government agency or in a case before a court or administrative agency? Yes X No

21. Have any restrictions been removed during the year from donor‐restricted funds? Yes X No If yes, please attach an explanation.

22. Have donor‐restricted funds been loaned to unrestricted funds? Yes X No If yes, please attach an explanation.

23. This question involves "Termination of Employment or Changes of Control Compensatory Arrangements" with certain "Related Parties" (see instructions and definition sections). Report only if payments made or promised to any individual are in excess of four months salary or $100,000, whichever dollar amount is less.

(a) Did you make actual payments or otherwise transfer value under such an arrangement to any individual described in Related Party definition, sections (a) or (b), which payments are not reported in Question 6 or 7 above? Yes X No

(b) Do you have an agreement with any individual described in Related Party definition, sections (a) or (b), containing such an agreement? Yes X No

If you answered yes for Question 23(a) or 23(b) above, please attach an explanation identifying the individual(s) involved, stating the amount of any payments made or value transferred, and describing the terms of each agreement.

Form PC Page 5 of 14 Rev. 02/2010 478005 05‐01‐14 7 THE TOR PROJECT, INC. 20‐8096820 24. This question applies to related party transactions, which include transactions with officers, directors, trustees, certain employees, relative, and organizations they own or control. Please consult the instructions and definition sections for the definition of a "Related Party" and "Indebtedness" before answering. Note that transactions involving related parties must be reported even when there is no accounting recognition (e.g. in‐kind gifts, waiver of interest not otherwise reported).

If the answer to any part of Question 24 is yes, attach a schedule stating the name and address of the related party, the nature of the transaction, the value or the amounts involved in the transaction, and the procedure followed in authorizing the transaction.

During the year:

A. Has your organization sold or transferred assets to or purchased assets from or exchanged assets with a related party? Yes X No

B. Has your organization leased assets to or leased assets from a related party? Yes X No

C. Has your organization been indebted to a related party? Yes X No

D. Has your organization allowed a related party to be indebted to it? Yes X No

E. Has your organization made or held an investment in a related party? Yes X No

F. Has your organization furnished goods, services, or facilities to a related party? Yes X No

G. Has your organization acquired goods, services, or facilities from a related party who received compensation or other value in return? Yes X No

H. Has your organization paid or became obligated to pay wages, salary, or other compensation to a related party? Yes X No

I. Has your organization transferred income or assets to or for use by a related party? Yes X No

J. Was your organization a party to any transaction in which any of its officers, directors, or trustees has a material financial interest, or did any officer, director, or trustee receive anything of value not reported as compensation? Yes X No

K. Has your organization invested in any corporate stock of a company in which any officer, director, or trustee owns more than 10% of the outstanding shares? Yes X No

L. Is any property of the organization held in the name of or commingled with the property of any other person or organization? Yes X No

M. Did your organization make a grant award or contribution to any other organization in which any of this organization's officers, directors, or trustees has a relationship? Yes X No

Form PC Page 6 of 14 Rev. 02/2010 478006 05‐01‐14 8 THE TOR PROJECT, INC. 20‐8096820

Signature Required

Under penalty of perjury, I declare that the information furnished in this report, including all attachments, is true and correct to the best of my knowledge.

Signature: Date:

Printed Name: MEREDITH DUNN

Title: DIRECTOR

Name of Preparer: MOODY, FAMIGLIETTI & ANDRONICO, LLP

Address 1 HIGHWOOD DRIVE

City TEWKSBURY State MA ZIP Code 01876

Phone Number (978)557‐5300

Form PC Page 7 of 14 Rev. 02/2010 478007 10‐14‐14 9 THE TOR PROJECT, INC. 20‐8096820 Schedule A‐1 Solicitation Activities During Fiscal Year Covered By This Report

List any names which will be used by the organization in connection with the solicitation of funds, other than the official name which appears on page 1.

Types of solicitation activities in which you expect to engage (check all that apply):

Mass Mailing Via the Internet X Door‐to‐door Raffle, beano, bingo or gaming event Entertainment event Sale of goods other than by telephone Telemarketing without sale of goods or ads Individual Mailings Telemarketing with sale of goods Corporate solicitations X Telemarketing with sale of ads Grant Proposals X Other (specify):

Identify the method or methods you expect to use for the fundraising (check all that apply):

Professional solicitor* Own employees X Professional fundraising counsel* Volunteers Commercial co‐venturer*

* Provide applicable names and addresses:

Professional Solicitor Name:

Address

City State ZIP Code

Professional Fundraising Counsel Name:

Address

City State ZIP Code

Commercial Co‐Venturer Name:

Address

City State ZIP Code

Form PC ‐ Schedule A‐1 Page 8 of 14 Rev. 02/2010 478008 05‐01‐14 10 THE TOR PROJECT, INC. 20‐8096820 Schedule A‐1 ctd. Solicitation Activities During Fiscal Year Covered By This Report

Identify the individuals who will have final responsibility for the charity's custody of contributions: ANDREW LEWMAN Name and Title: CLERK, TREAS., EXEC. DIR.

Address 7 TEMPLE STREET, SUITE A

City CAMBRIDGE State MA ZIP Code 02139

Name and Title:

Address

City State ZIP Code

Name and Title:

Address

City State ZIP Code

Identify the individuals who will have final responsibility for the charity's distribution of contributions: ANDREW LEWMAN Name and Title: CLERK, TREAS., EXEC. DIR.

Address 7 TEMPLE STREET, SUITE A

City CAMBRIDGE State MA ZIP Code 02139

Name and Title:

Address

City State ZIP Code

Name and Title:

Address

City State ZIP Code

Form PC ‐ Schedule A‐1 Page 9 of 14 Rev. 02/2010 478009 05‐01‐14 11 THE TOR PROJECT, INC. 20‐8096820 Schedule A‐2 Solicitation Activities Planned for Fiscal Year Which Follows the Reporting Year

List any names which will be used by the organization in connection with the solicitation of funds, other than the official name which appears on page 1.

Types of solicitation activities in which you expect to engage (check all that apply):

Identify the method or methods you expect to use for the fundraising (check all that apply):

Professional solicitor* Own employees X Professional fundraising counsel* Volunteers Commercial co‐venturer*

* Provide applicable names and addresses:

Professional Solicitor Name:

Address

City State ZIP Code

Professional Fundraising Counsel Name:

Address

City State ZIP Code

Commercial Co‐Venturer Name:

Address

City State ZIP Code

Form PC ‐ Schedule A‐2 Page 10 of 14 Rev. 02/2010 478010 05‐01‐14 12 THE TOR PROJECT, INC. 20‐8096820 Schedule A‐2 ctd. Solicitation Activities Planned for Fiscal Year Which Follows the Reporting Year

Identify the individuals who will have final responsibility for the charity's custody of contributions: ROGER DINGLEDINE Name and Title: INTERIM EXECUTIVE DIRECTOR

Address 7 TEMPLE STREET, SUITE A

City CAMBRIDGE State MA ZIP Code 02139

Name and Title:

Address

City State ZIP Code

Name and Title:

Address

City State ZIP Code

Identify the individuals who will have final responsibility for the charity's distribution of contributions: ROGER DINGLEDINE Name and Title: INTERIM EXECUTIVE DIRECTOR

Address 7 TEMPLE STREET, SUITE A

City CAMBRIDGE State MA ZIP Code 02139

Name and Title:

Address

City State ZIP Code

Name and Title:

Address

City State ZIP Code

Form PC ‐ Schedule A‐2 Page 11 of 14 Rev. 02/2010 478011 05‐01‐14 13 Certification by Organization

Two different signatures required. Signers must be organization president or other authorized officer or trustee.

Under penalty of perjury, we declare that the information furnished in this report, including all attachments, is true and correct to the best of our knowledge.

Signature: Date:

Print Name:MEREDITH DUNN

Title: DIRECTOR

Signature: Date:

Print Name:

Title:

Form PC Page 12 of 14 Rev. 02/2010 478012 05‐01‐14 14 Schedule RO

1. Please read the instructions and definition of "Related Organization" carefully before completing this section. (If you have more than five Related Organizations, please attach a list.)

Name: Primary purpose or activity: FYE A. Donor restricted funds B. 3rd party restricted funds C. Unrestricted funds D. Total net assets (‐) liabilities (‐) liabilities (‐) liabilities (A+B+C)

Form PC ‐ Schedule RO Page 13 of 14 Rev. 02/2010 478013 05‐01‐14 15 Schedule RO ctd.

2. List the total compensation paid by your organization and/or any other related organization to your chief executive (e.g. executive director) and to the four other current or former directors, trustees, officers, or employees within the system of related organizations identified at question 1, above, receiving the highest aggregate compensation (see instructions). Use additional lines below to itemize by compensation source.

Name: Title: Income Source: Salary and Other Income: Benefits Plan: Other Compensation:

3. Is asset and/or compensation information for religious organizations and/or certain non‐charitable entities related to foundations excluded pursuant to instructions? Yes X No

Form PC ‐ Schedule RO Page 14 of 14 Rev. 02/2010 478014 05‐01‐14 16 EXTENSION GRANTED UNTIL NOVEMBER 15, 2015 Return of Organization Exempt From Income Tax OMB No. 1545‐0047 Form 990 Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private foundations) 2014 Department of the Treasury | Do not enter social security numbers on this form as it may be made public. Open to Public Internal Revenue Service | Information about Form 990 and its instructions is at www.irs.gov/form990. Inspection A For the 2014 calendar year, or tax year beginning and ending B Check if C Name of organization D Employer identification number applicable:

Address change THE TOR PROJECT, INC. Name change Doing business as 20‐8096820 Initial return Number and street (or P.O. box if mail is not delivered to street address) Room/suite E Telephone number Final return/ 7 TEMPLE STREET, SUITE A (781) 769‐7555 termin‐ ated City or town, state or province, country, and ZIP or foreign postal code G Gross receipts $ 2,556,397. Amended return CAMBRIDGE, MA 02139 H(a) Is this a group return Applica‐ tion F Name and address of principal officer:MEREDITH DUNN for subordinates? ~~ Yes X No pending SAME AS C ABOVE H(b) Are all subordinates included? Yes No I Tax‐exempt status: X 501(c)(3) 501(c) ( )§ (insert no.) 4947(a)(1) or 527 If "No," attach a list. (see instructions) J Website: | WWW.TORPROJECT.ORG H(c) Group exemption number | K Form of organization: X Corporation Trust Association Other | L Year of formation: 2006 M State of legal domicile: MA Part I Summary 1 Briefly describe the organization's mission or most significant activities: RESEARCH, DEVELOPMENT, EDUCATION AND ADVOCACY INTO ONLINE ANONYMITY AND PRIVACY. 2 Check this box | if the organization discontinued its operations or disposed of more than 25% of its net assets. 3 Number of voting members of the governing body (Part VI, line 1a) ~~~~~~~~~~~~~~~~~~~~ 3 8 4 Number of independent voting members of the governing body (Part VI, line 1b) ~~~~~~~~~~~~~~ 4 5 5 Total number of individuals employed in calendar year 2014 (Part V, line 2a) ~~~~~~~~~~~~~~~~ 5 10 6 Total number of volunteers (estimate if necessary) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 6 3000 7 a Total unrelated business revenue from Part VIII, column (C), line 12 ~~~~~~~~~~~~~~~~~~~~ 7a 0. Activities & Governance b Net unrelated business taxable income from Form 990‐T, line 34 7b 0. Prior Year Current Year 8 Contributions and grants (Part VIII, line 1h) ~~~~~~~~~~~~~~~~~~~~~ 129,118. 288,667. 9 Program service revenue (Part VIII, line 2g) ~~~~~~~~~~~~~~~~~~~~~ 2,740,366. 2,265,347. 10 Investment income (Part VIII, column (A), lines 3, 4, and 7d) ~~~~~~~~~~~~~ 1,152. 1,648. Revenue 11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) ~~~~~~~~ 2,293. 735. 12 Total revenue ‐ add lines 8 through 11 (must equal Part VIII, column (A), line 12) 2,872,929. 2,556,397. 13 Grants and similar amounts paid (Part IX, column (A), lines 1‐3) ~~~~~~~~~~~ 10,000. 10,500. 14 Benefits paid to or for members (Part IX, column (A), line 4) ~~~~~~~~~~~~~ 0. 0. 15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5‐10) ~~~ 1,302,280. 1,219,803. 16a Professional fundraising fees (Part IX, column (A), line 11e)~~~~~~~~~~~~~~ 0. 0. b Total fundraising expenses (Part IX, column (D), line 25) | 30,954.

Expenses 17 Other expenses (Part IX, column (A), lines 11a‐11d, 11f‐24e) ~~~~~~~~~~~~~ 1,119,661. 1,288,241. 18 Total expenses. Add lines 13‐17 (must equal Part IX, column (A), line 25) ~~~~~~~ 2,431,941. 2,518,544. 19 Revenue less expenses. Subtract line 18 from line 12 440,988. 37,853. Beginning of Current Year End of Year 20 Total assets (Part X, line 16) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1,700,238. 1,790,650. 21 Total liabilities (Part X, line 26) ~~~~~~~~~~~~~~~~~~~~~~~~~~~ 261,258. 313,817. Net Assets or

Fund Balances 22 Net assets or fund balances. Subtract line 21 from line 20 1,438,980. 1,476,833. Part II Signature Block Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.

Sign = Signature of officer Date Here MEREDITH DUNN, DIRECTOR = Type or print name and title Print/Type preparer's name Preparer's signature Date Check PTIN if Paid JOYCE RIPIANZI, CPA self‐employed P00548581 Preparer Firm's name MOODY, FAMIGLIETTI & ANDRONICO, LLP Firm's EIN 04‐3077056 Use Only Firm's address 9 1 HIGHWOOD DRIVE 9 9 TEWKSBURY, MA 01876 Phone no.(978)557‐5300 May the IRS discuss this return with the preparer shown above? (see instructions) X Yes No 432001 11‐07‐14 LHA For Paperwork Reduction Act Notice, see the separate instructions. Form 990 (2014) 17 Form 990 (2014) THE TOR PROJECT, INC. 20‐8096820 Page 2 Part III Statement of Program Service Accomplishments Check if Schedule O contains a response or note to any line in this Part III X 1 Briefly describe the organization's mission: (A) TO DEVELOP, IMPROVE AND DISTRIBUTE FREE, PUBLICLY AVAILABLE TOOLS AND PROGRAMS THAT PROMOTE FREE SPEECH, FREE EXPRESSION, CIVIC ENGAGEMENT AND PRIVACY RIGHTS ONLINE; (B) TO CONDUCT SCIENTIFIC RESEARCH REGARDING, AND TO PROMOTE THE USE OF AND KNOWLEDGE ABOUT, 2 Did the organization undertake any significant program services during the year which were not listed on the prior Form 990 or 990‐EZ? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes X No If "Yes," describe these new services on Schedule O. 3 Did the organization cease conducting, or make significant changes in how it conducts, any program services?~~~~~~ Yes X No If "Yes," describe these changes on Schedule O. 4 Describe the organization's program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported. 4a (Code: ) (Expenses $ 2,344,084. including grants of $ 10,500. ) (Revenue $ 2,266,082. ) TO ENABLE, WITH THE USE OF FREE SOFTWARE, AND EDUCATE THE GENERAL PUBLIC ABOUT INTERNET PRIVACY AND ANONYMITY. FUND RESEARCH GRANTS TO FURTHER THIS PURPOSE.

4b (Code: ) (Expenses $ including grants of $ ) (Revenue $ )

4c (Code: ) (Expenses $ including grants of $ ) (Revenue $ )

4d Other program services (Describe in Schedule O.) (Expenses $ including grants of $ ) (Revenue $ ) 4e Total program service expenses | 2,344,084. Form 990 (2014) 432002 11‐07‐14 18 Form 990 (2014) THE TOR PROJECT, INC. 20‐8096820 Page 3 Part IV Checklist of Required Schedules Yes No 1 Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If "Yes," complete Schedule A~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1 X 2 Is the organization required to complete Schedule B, Schedule of Contributors? ~~~~~~~~~~~~~~~~~~~~~~ 2 X 3 Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If "Yes," complete Schedule C, Part I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3 X 4 Section 501(c)(3) organizations. Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? If "Yes," complete Schedule C, Part II ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4 X 5 Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98‐19? If "Yes," complete Schedule C, Part III ~~~~~~~~~~~~~~ 5 X 6 Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If "Yes," complete Schedule D, Part I 6 X 7 Did the organization receive or hold a conservation easement, including easements to preserve open space, the environment, historic land areas, or historic structures? If "Yes," complete Schedule D, Part II~~~~~~~~~~~~~~ 7 X 8 Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes," complete Schedule D, Part III ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 8 X 9 Did the organization report an amount in Part X, line 21, for escrow or custodial account liability; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If "Yes," complete Schedule D, Part IV ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 9 X 10 Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi‐endowments? If "Yes," complete Schedule D, Part V ~~~~~~~~~~~~~~~~~~~~~~~~ 10 X 11 If the organization's answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable. a Did the organization report an amount for land, buildings, and equipment in Part X, line 10? If "Yes," complete Schedule D, Part VI ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 11a X b Did the organization report an amount for investments ‐ other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VII ~~~~~~~~~~~~~~~~~~~~~~~~~ 11b X c Did the organization report an amount for investments ‐ program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VIII ~~~~~~~~~~~~~~~~~~~~~~~~~ 11c X d Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part IX ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 11d X e Did the organization report an amount for other liabilities in Part X, line 25? If "Yes," complete Schedule D, Part X ~~~~~~ 11e X f Did the organization's separate or consolidated financial statements for the tax year include a footnote that addresses the organization's liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes," complete Schedule D, Part X ~~~~ 11f X 12a Did the organization obtain separate, independent audited financial statements for the tax year? If "Yes," complete Schedule D, Parts XI and XII ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 12a X b Was the organization included in consolidated, independent audited financial statements for the tax year? If "Yes," and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI and XII is optional ~~~~~ 12b X 13 Is the organization a school described in section 170(b)(1)(A)(ii)? If "Yes," complete Schedule E ~~~~~~~~~~~~~~ 13 X 14a Did the organization maintain an office, employees, or agents outside of the United States? ~~~~~~~~~~~~~~~~ 14a X b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? If "Yes," complete Schedule F, Parts I and IV ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 14b X 15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other assistance to or for any foreign organization? If "Yes," complete Schedule F, Parts II and IV ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 15 X 16 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or other assistance to or for foreign individuals? If "Yes," complete Schedule F, Parts III and IV ~~~~~~~~~~~~~~~~~~~~~~~~~~ 16 X 17 Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If "Yes," complete Schedule G, Part I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 17 X 18 Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If "Yes," complete Schedule G, Part II ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 18 X 19 Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If "Yes," complete Schedule G, Part III ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 19 X 20a Did the organization operate one or more hospital facilities? If "Yes," complete Schedule H ~~~~~~~~~~~~~~~~ 20a X b If "Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return? 20b Form 990 (2014)

432003 11‐07‐14 19 Form 990 (2014) THE TOR PROJECT, INC. 20‐8096820 Page 4 Part IV Checklist of Required Schedules (continued) Yes No 21 Did the organization report more than $5,000 of grants or other assistance to any domestic organization or domestic government on Part IX, column (A), line 1? If "Yes," complete Schedule I, Parts I and II ~~~~~~~~~~~~~~ 21 X 22 Did the organization report more than $5,000 of grants or other assistance to or for domestic individuals on Part IX, column (A), line 2? If "Yes," complete Schedule I, Parts I and III ~~~~~~~~~~~~~~~~~~~~~~~~~~ 22 X 23 Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about compensation of the organization's current and former officers, directors, trustees, key employees, and highest compensated employees? If "Yes," complete Schedule J ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 23 X 24a Did the organization have a tax‐exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If "Yes," answer lines 24b through 24d and complete Schedule K. If "No", go to line 25a ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 24a X b Did the organization invest any proceeds of tax‐exempt bonds beyond a temporary period exception? ~~~~~~~~~~~ 24b c Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax‐exempt bonds? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 24c d Did the organization act as an "on behalf of" issuer for bonds outstanding at any time during the year?~~~~~~~~~~~ 24d 25a Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If "Yes," complete Schedule L, Part I ~~~~~~~~~~~~~~~~ 25a X b Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization's prior Forms 990 or 990‐EZ? If "Yes," complete Schedule L, Part I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 25b X 26 Did the organization report any amount on Part X, line 5, 6, or 22 for receivables from or payables to any current or former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? If "Yes," complete Schedule L, Part II ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 26 X 27 Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If "Yes," complete Schedule L, Part III ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 27 X 28 Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions): a A current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L, Part IV ~~~~~~~~~~~ 28a X b A family member of a current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L, Part IV ~~ 28b X c An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or direct or indirect owner? If "Yes," complete Schedule L, Part IV~~~~~~~~~~~~~~~~~~~~~ 28c X 29 Did the organization receive more than $25,000 in non‐cash contributions? If "Yes," complete Schedule M ~~~~~~~~~ 29 X 30 Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If "Yes," complete Schedule M ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 30 X 31 Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes," complete Schedule N, Part I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 31 X 32 Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes," complete Schedule N, Part II ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 32 X 33 Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701‐2 and 301.7701‐3? If "Yes," complete Schedule R, Part I ~~~~~~~~~~~~~~~~~~~~~~~~ 33 X 34 Was the organization related to any tax‐exempt or taxable entity? If "Yes," complete Schedule R, Part II, III, or IV, and Part V, line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 34 X 35a Did the organization have a controlled entity within the meaning of section 512(b)(13)? ~~~~~~~~~~~~~~~~~~ 35a X b If "Yes" to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If "Yes," complete Schedule R, Part V, line 2 ~~~~~~~~~~~~~~~~~~~ 35b 36 Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non‐charitable related organization? If "Yes," complete Schedule R, Part V, line 2 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 36 X 37 Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If "Yes," complete Schedule R, Part VI ~~~~~~~~ 37 X 38 Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11b and 19? Note. All Form 990 filers are required to complete Schedule O 38 X Form 990 (2014)

432004 11‐07‐14 20 Form 990 (2014) THE TOR PROJECT, INC. 20‐8096820 Page 5 Part V Statements Regarding Other IRS Filings and Tax Compliance Check if Schedule O contains a response or note to any line in this Part V Yes No 1a Enter the number reported in Box 3 of Form 1096. Enter ‐0‐ if not applicable ~~~~~~~~~~~ 1a 15 b Enter the number of Forms W‐2G included in line 1a. Enter ‐0‐ if not applicable ~~~~~~~~~~ 1b 0 c Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? 1c X 2a Enter the number of employees reported on Form W‐3, Transmittal of Wage and Tax Statements, filed for the calendar year ending with or within the year covered by this return ~~~~~~~~~~ 2a 10 b If at least one is reported on line 2a, did the organization file all required federal employment tax returns?~~~~~~~~~~ 2b X Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e‐file (see instructions) ~~~~~~~~~~~ 3a Did the organization have unrelated business gross income of $1,000 or more during the year? ~~~~~~~~~~~~~~ 3a X b If "Yes," has it filed a Form 990‐T for this year? If "No," to line 3b, provide an explanation in Schedule O ~~~~~~~~~~ 3b 4a At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account)?~~~~~~~ 4a X b If "Yes," enter the name of the foreign country: J See instructions for filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). 5a Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? ~~~~~~~~~~~~ 5a X b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?~~~~~~~~~ 5b X c If "Yes," to line 5a or 5b, did the organization file Form 8886‐T? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 5c 6a Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible as charitable contributions? ~~~~~~~~~~~~~~~~~~~~~~~~ 6a X b If "Yes," did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 6b 7 Organizations that may receive deductible contributions under section 170(c). a Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor? 7a X b If "Yes," did the organization notify the donor of the value of the goods or services provided? ~~~~~~~~~~~~~~~ 7b c Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282? 7c X d If "Yes," indicate the number of Forms 8282 filed during the year ~~~~~~~~~~~~~~~~ 7d e Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? ~~~~~~~ 7e X f Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? ~~~~~~~~~ 7f X g If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?~ 7g h If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098‐C? 7h 8 Sponsoring organizations maintaining donor advised funds. Did a donor advised fund maintained by the sponsoring organization have excess business holdings at any time during the year? ~~~~~~~~~~~~~~~~~~~ 8 9 Sponsoring organizations maintaining donor advised funds. a Did the sponsoring organization make any taxable distributions under section 4966? ~~~~~~~~~~~~~~~~~~~ 9a b Did the sponsoring organization make a distribution to a donor, donor advisor, or related person? ~~~~~~~~~~~~~ 9b 10 Section 501(c)(7) organizations. Enter: a Initiation fees and capital contributions included on Part VIII, line 12 ~~~~~~~~~~~~~~~ 10a b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities ~~~~~~ 10b 11 Section 501(c)(12) organizations. Enter: a Gross income from members or shareholders ~~~~~~~~~~~~~~~~~~~~~~~~~~ 11a b Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 11b 12a Section 4947(a)(1) non‐exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041? 12a b If "Yes," enter the amount of tax‐exempt interest received or accrued during the year 12b 13 Section 501(c)(29) qualified nonprofit health insurance issuers. a Is the organization licensed to issue qualified health plans in more than one state? ~~~~~~~~~~~~~~~~~~~~~ 13a Note. See the instructions for additional information the organization must report on Schedule O. b Enter the amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans ~~~~~~~~~~~~~~~~~~~~~~ 13b c Enter the amount of reserves on hand ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 13c 14a Did the organization receive any payments for indoor tanning services during the tax year? ~~~~~~~~~~~~~~~~ 14a X b If "Yes," has it filed a Form 720 to report these payments? If "No," provide an explanation in Schedule O 14b Form 990 (2014)

432005 11‐07‐14 21 Form 990 (2014) THE TOR PROJECT, INC. 20‐8096820 Page 6 Part VI Governance, Management, and Disclosure For each "Yes" response to lines 2 through 7b below, and for a "No" response to line 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions. Check if Schedule O contains a response or note to any line in this Part VI X Section A. Governing Body and Management Yes No 1a Enter the number of voting members of the governing body at the end of the tax year ~~~~~~ 1a 8 If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O. b Enter the number of voting members included in line 1a, above, who are independent ~~~~~~ 1b 5 2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2 X 3 Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors, or trustees, or key employees to a management company or other person? ~~~~~~~~~~~~~~ 3 X 4 Did the organization make any significant changes to its governing documents since the prior Form 990 was filed? ~~~~~ 4 X 5 Did the organization become aware during the year of a significant diversion of the organization's assets? ~~~~~~~~~ 5 X 6 Did the organization have members or stockholders? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 6 X 7a Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 7a X b Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 7b X 8 Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following: a The governing body? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 8a X b Each committee with authority to act on behalf of the governing body? ~~~~~~~~~~~~~~~~~~~~~~~~~~ 8b X 9 Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization's mailing address? If "Yes," provide the names and addresses in Schedule O 9 X Section B. Policies (This Section B requests information about policies not required by the Internal Revenue Code.) Yes No 10a Did the organization have local chapters, branches, or affiliates?~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 10a X b If "Yes," did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? ~~~~~~~~~~~~~ 10b 11a Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form? 11a X b Describe in Schedule O the process, if any, used by the organization to review this Form 990. 12a Did the organization have a written conflict of interest policy? If "No," go to line 13 ~~~~~~~~~~~~~~~~~~~~ 12a X b Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ~~~~~~ 12b X c Did the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes," describe in Schedule O how this was done ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 12c X 13 Did the organization have a written whistleblower policy? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 13 X 14 Did the organization have a written document retention and destruction policy? ~~~~~~~~~~~~~~~~~~~~~~ 14 X 15 Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision? a The organization's CEO, Executive Director, or top management official ~~~~~~~~~~~~~~~~~~~~~~~~~~ 15a X b Other officers or key employees of the organization ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 15b X If "Yes" to line 15a or 15b, describe the process in Schedule O (see instructions). 16a Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 16a X b If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization's exempt status with respect to such arrangements? 16b Section C. Disclosure 17 List the states with which a copy of this Form 990 is required to be filed JMA 18 Section 6104 requires an organization to make its Forms 1023 (or 1024 if applicable), 990, and 990‐T (Section 501(c)(3)s only) available for public inspection. Indicate how you made these available. Check all that apply. Own website Another's website X Upon request Other (explain in Schedule O) 19 Describe in Schedule O whether (and if so, how) the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year. 20 State the name, address, and telephone number of the person who possesses the organization's books and records: | THE ORGANIZATION ‐ 781‐769‐7555 7 TEMPLE STREET, SUITE A, CAMBRIDGE, MA 02139 432006 11‐07‐14 Form 990 (2014) 22 432007 11‐07‐14 DEVELOPER (11) KARSTENLOESING DEVELOPER (10) MIKEPERRY DEVELOPER (9) ANDREASHEPARD DIRECTOR (8) ROBTHOMAS DIRECTOR (7) CASPARBOWDEN DIRECTOR (6) MEREDITHDUNN DIRECTOR (5) WENDYSELTZER CHAIRMAN/DIRECTOR (4) IANGOLDBERG TREAS/CLERK/EXEC DIR (3) ANDREWLEWMAN V.P./CHIEF ARCHITECT (2) NICKMATHEWSON PRES/RESEARCH DIRECTOR (1) ROGERDINGLEDINE and formersuchpersons. List personsinthefollowingorder:individualtrusteesordirectors;institutionaltrustees;officers;keyemployees;highestcompensated more than$10,000ofreportablecompensationfromtheorganizationandanyrelatedorganizations. reportable compensationfromtheorganizationandanyrelatedorganizations. able compensation(Box5ofFormW‐2and/orBox71099‐MISC)morethan$100,000fromtheorganizationandanyrelatedorganizations. Enter ‐0‐incolumns(D),(E),and(F)ifnocompensationwaspaid. 1a Section A. Form 990(2014) Part VII Complete thistableforallpersonsrequiredtobelisted.Reportcompensationthecalendaryearendingwithorwithinorganization'staxyear. ¥ Listalloftheorganization's ¥ Listalloftheorganization's ¥ Listtheorganization'sfive ¥ Listalloftheorganization's ¥ Listalloftheorganization's Check thisboxifneithertheorganizationnoranyrelatedcompensatedcurrentofficer,director,ortrustee. Check ifScheduleOcontainsaresponseornotetoanylineinthisPartVII Employees, andIndependentContractors Compensation ofOfficers,Directors,Trustees,KeyEmployees,HighestCompensated Officers, Directors,Trustees,KeyEmployees,andHighestCompensatedEmployees Name andTitle (A) THE TORPROJECT,INC. current former directorsortrustees former current current highestcompensatedemployees(otherthananofficer,director,trustee,orkeyemployee)whoreceivedreport‐ officers, keyemployees,andhighestcompensatedemployeeswhoreceivedmorethan$100,000of key employees,ifany.Seeinstructionsfordefinitionof"keyemployee." officers, directors,trustees(whetherindividualsororganizations),regardlessofamountcompensation. organizations hours per hours for Average 40.00 40.00 40.00 40.00 40.00 40.00 (list any related below week 3.00 3.00 3.00 3.00 3.00 line) (B) that received,inthecapacityasaformerdirectorortrusteeoforganization, box, unlesspersonisbothan X X X X X X X X officer andadirector/trustee) Individual trustee or director (do notcheckmorethanone

Institutional trustee Position X X X

Officer (C)

23 Key employee

X X X Highest compensated employee Former (W‐2/1099‐MISC) compensation organization Reportable 119,256. 117,667. 125,004. 150,000. 135,000. 135,000. from the (D) 0. 0. 0. 0. 0. (W‐2/1099‐MISC) compensation organizations from related Reportable 20‐8096820 (E) 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. Form compensation organizations organization and related amount of 22,615. 21,700. 18,675. Estimated from the 3,666. 2,953. 8,219.

other 990 (F) Page

(2014)

0. 0. 0. 0. 0. 7 11‐07‐14 432008 447 MARLPOOLDRIVE,SALINE,MI48176 PEARL CRESCENT Form 990(2014) Part VII Section B.IndependentContractors 2 1 5 4 3 2 1 d c b $100,000 ofcompensation fromtheorganization Total numberofindependentcontractors (includingbutnotlimitedtothoselistedabove)whoreceived morethan the organization.Reportcompensationforcalendaryearending withorwithintheorganization'staxyear. Complete thistableforyourfivehighestcompensatedindependent contractorsthatreceivedmorethan$100,000ofcompensationfrom rendered totheorganization? Did anypersonlistedonline1areceiveoraccruecompensationfromunrelatedorganizationindividualforservices and relatedorganizationsgreaterthan$150,000? For anyindividuallistedonline1a,isthesumofreportablecompensationandotherfromorganization line 1a? Did theorganizationlistany compensation fromtheorganization Total numberofindividuals(includingbutnotlimitedtothoselistedabove)whoreceivedmorethan$100,000reportable Total (addlines1band1c) Total fromcontinuationsheetstoPartVII,SectionA Sub‐total Section A.Officers,Directors,Trustees,KeyEmployees,andHighestCompensatedEmployees If "Yes,"completeScheduleJforsuchindividual ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Name andtitle (A) Name andbusinessaddress THE TORPROJECT,INC. former If "Yes,"completeScheduleJforsuchperson (A) officer, director,ortrustee,keyemployee,highestcompensatedemployeeon | organizations hours per hours for Average (list any related below week line) (B) If "Yes,"completeScheduleJforsuchindividual | ~~~~~~~~~~ box, unlesspersonisbothan ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ officer andadirector/trustee) Individual trustee or director (do notcheckmorethanone

Institutional trustee Position

Officer (C)

24 Key employee 1 Highest compensated

employee | | | Former SERVICES IT CONSULTING (W‐2/1099‐MISC) compensation organization Reportable 781,927. 781,927. Description ofservices from the (D) ~~~~~~~~~~~~~ (B) 0. (W‐2/1099‐MISC) (continued) compensation organizations from related Reportable 20‐8096820 (E) 0. 0. 0. Compensation Form compensation 100,725. organizations 5 4 3 organization and related amount of 77,828. 77,828. Estimated (C) from the

990 other Yes (F) X Page (2014) No X X 0. 6 8 Form 990 (2014) THE TOR PROJECT, INC. 20‐8096820 Page 9 Part VIII Statement of Revenue Check if Schedule O contains a response or note to any line in this Part VIII (A) (B) (C) (D) Related or Unrelated Revenue excluded Total revenue from tax under exempt function business sections revenue revenue 512 ‐ 514 1 a Federated campaigns ~~~~~~ 1a b Membership dues ~~~~~~~~ 1b c Fundraising events ~~~~~~~~ 1c d Related organizations ~~~~~~ 1d e Government grants (contributions) 1e f All other contributions, gifts, grants, and similar amounts not included above ~~ 1f 288,667. g Noncash contributions included in lines 1a‐1f: $ and Other Similar Amounts Contributions, Gifts, Grants h Total. Add lines 1a‐1f | 288,667. Business Code 2 a RFA CONTRACT INCOME 900099 733,000. 733,000. b SRI CONTRACT INCOME 900099 638,425. 638,425. c DRL GRANTS 900001 635,122. 635,122. d SRI LIGHTS CONTRACT IN 900099 158,516. 158,516. Revenue e NSF AND OTHER CONTRACT 900099 100,284. 100,284.

Program Service f All other program service revenue ~~~~~ g Total. Add lines 2a‐2f | 2,265,347. 3 Investment income (including dividends, interest, and other similar amounts)~~~~~~~~~~~~~~~~~ | 1,648. 1,648. 4 Income from investment of tax‐exempt bond proceeds | 5 Royalties | (i) Real (ii) Personal 6 a Gross rents ~~~~~~~ b Less: rental expenses~~~ c Rental income or (loss) ~~ d Net rental income or (loss) | 7 a Gross amount from sales of (i) Securities (ii) Other assets other than inventory b Less: cost or other basis and sales expenses ~~~ c Gain or (loss) ~~~~~~~ d Net gain or (loss) | 8 a Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ~~~~~~~~~~~~~ a b Less: direct expenses~~~~~~~~~~ b Other Revenue c Net income or (loss) from fundraising events | 9 a Gross income from gaming activities. See Part IV, line 19 ~~~~~~~~~~~~~ a b Less: direct expenses ~~~~~~~~~ b c Net income or (loss) from gaming activities | 10 a Gross sales of inventory, less returns and allowances ~~~~~~~~~~~~~ a b Less: cost of goods sold ~~~~~~~~ b c Net income or (loss) from sales of inventory | Miscellaneous Revenue Business Code 11 a MISCELLANEOUS INCOME 900099 735. 735. b c d All other revenue ~~~~~~~~~~~~~ e Total. Add lines 11a‐11d ~~~~~~~~~~~~~~~ | 735. 12 Total revenue. See instructions. | 2,556,397.2,266,082. 0. 1,648. 432009 11‐07‐14 Form 990 (2014) 25 Form 990 (2014) THE TOR PROJECT, INC. 20‐8096820 Page 10 Part IX Statement of Functional Expenses Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A). Check if Schedule O contains a response or note to any line in this Part IX (A) (B) (C) (D) Do not include amounts reported on lines 6b, Total expenses Program service Management and Fundraising 7b, 8b, 9b, and 10b of Part VIII. expenses general expenses expenses 1 Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21 ~ 500. 500. 2 Grants and other assistance to domestic individuals. See Part IV, line 22 ~~~~~~~ 3 Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 ~~~ 10,000. 10,000. 4 Benefits paid to or for members ~~~~~~~ 5 Compensation of current officers, directors, trustees, and key employees ~~~~~~~~ 468,594. 446,719. 17,133. 4,742. 6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ~~~ 7 Other salaries and wages ~~~~~~~~~~ 651,913. 618,205. 13,454. 20,254. 8 Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) 9 Other employee benefits ~~~~~~~~~~ 31,733. 31,733. 10 Payroll taxes ~~~~~~~~~~~~~~~~ 67,563. 64,304. 1,793. 1,466. 11 Fees for services (non‐employees): a Management ~~~~~~~~~~~~~~~~ b Legal ~~~~~~~~~~~~~~~~~~~~ 31,405. 27,199. 3,852. 354. c Accounting ~~~~~~~~~~~~~~~~~ 131,365. 113,773. 16,114. 1,478. d Lobbying ~~~~~~~~~~~~~~~~~~ e Professional fundraising services. See Part IV, line 17 f Investment management fees ~~~~~~~~ g Other. (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Sch O.) 10,500. 9,094. 1,288. 118. 12 Advertising and promotion ~~~~~~~~~ 26,261. 23,179. 2,823. 259. 13 Office expenses~~~~~~~~~~~~~~~ 14 Information technology ~~~~~~~~~~~ 35,175. 33,881. 1,212. 82. 15 Royalties ~~~~~~~~~~~~~~~~~~ 16 Occupancy ~~~~~~~~~~~~~~~~~ 23,704. 20,386. 3,039. 279. 17 Travel ~~~~~~~~~~~~~~~~~~~ 208,772. 132,854. 74,354. 1,564. 18 Payments of travel or entertainment expenses for any federal, state, or local public officials 19 Conferences, conventions, and meetings ~~ 3,866. 1,887. 1,979. 20 Interest ~~~~~~~~~~~~~~~~~~ 21 Payments to affiliates ~~~~~~~~~~~~ 22 Depreciation, depletion, and amortization ~~ 1,125. 968. 144. 13. 23 Insurance ~~~~~~~~~~~~~~~~~ 933. 802. 120. 11. 24 Other expenses. Itemize expenses not covered above. (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.) ~~ a CONTRACT SERVICES 777,168. 773,668. 3,500. 0. b BANK FEES AND SERVICES 11,877. 10,214. 1,523. 140. c PROGRAM SUPPLIES 6,445. 6,445. 0. 0. d e All other expenses 19,645. 18,273. 1,178. 194. 25 Total functional expenses. Add lines 1 through 24e 2,518,544. 2,344,084. 143,506. 30,954. 26 Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here | if following SOP 98‐2 (ASC 958‐720) 432010 11‐07‐14 Form 990 (2014) 26 Form 990 (2014) THE TOR PROJECT, INC. 20‐8096820 Page 11 Part X Balance Sheet Check if Schedule O contains a response or note to any line in this Part X (A) (B) Beginning of year End of year 1 Cash ‐ non‐interest‐bearing ~~~~~~~~~~~~~~~~~~~~~~~~~ 14,336. 1 65,633. 2 Savings and temporary cash investments ~~~~~~~~~~~~~~~~~~ 835,217. 2 987,195. 3 Pledges and grants receivable, net ~~~~~~~~~~~~~~~~~~~~~ 3 4 Accounts receivable, net ~~~~~~~~~~~~~~~~~~~~~~~~~~ 785,589. 4 671,866. 5 Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 5 6 Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instr). Complete Part II of Sch L ~~ 6 7 Notes and loans receivable, net ~~~~~~~~~~~~~~~~~~~~~~~ 7

Assets 8 Inventories for sale or use ~~~~~~~~~~~~~~~~~~~~~~~~~~ 8 9 Prepaid expenses and deferred charges ~~~~~~~~~~~~~~~~~~ 10,631. 9 14,871. 10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D ~~~ 10a 24,004. b Less: accumulated depreciation ~~~~~~ 10b 24,004. 1,125. 10c 0. 11 Investments ‐ publicly traded securities ~~~~~~~~~~~~~~~~~~~ 11 12 Investments ‐ other securities. See Part IV, line 11 ~~~~~~~~~~~~~~ 12 13 Investments ‐ program‐related. See Part IV, line 11 ~~~~~~~~~~~~~ 13 14 Intangible assets ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 14 15 Other assets. See Part IV, line 11 ~~~~~~~~~~~~~~~~~~~~~~ 53,340. 15 51,085. 16 Total assets. Add lines 1 through 15 (must equal line 34) 1,700,238. 16 1,790,650. 17 Accounts payable and accrued expenses ~~~~~~~~~~~~~~~~~~ 209,285. 17 170,690. 18 Grants payable ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 18 19 Deferred revenue ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 19 93,409. 20 Tax‐exempt bond liabilities ~~~~~~~~~~~~~~~~~~~~~~~~~ 20 21 Escrow or custodial account liability. Complete Part IV of Schedule D ~~~~ 51,973. 21 49,718. 22 Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified persons. Complete Part II of Schedule L ~~~~~~~~~~~~~~~~~~~~~~~ 22

Liabilities 23 Secured mortgages and notes payable to unrelated third parties ~~~~~~ 23 24 Unsecured notes and loans payable to unrelated third parties ~~~~~~~~ 24 25 Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17‐24). Complete Part X of Schedule D ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 25 26 Total liabilities. Add lines 17 through 25 261,258. 26 313,817. Organizations that follow SFAS 117 (ASC 958), check here | X and complete lines 27 through 29, and lines 33 and 34. 27 Unrestricted net assets ~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1,428,980. 27 1,476,833. 28 Temporarily restricted net assets ~~~~~~~~~~~~~~~~~~~~~~ 10,000. 28 0. 29 Permanently restricted net assets ~~~~~~~~~~~~~~~~~~~~~ 29 Organizations that do not follow SFAS 117 (ASC 958), check here | and complete lines 30 through 34. 30 Capital stock or trust principal, or current funds ~~~~~~~~~~~~~~~ 30 31 Paid‐in or capital surplus, or land, building, or equipment fund ~~~~~~~~ 31 32 Retained earnings, endowment, accumulated income, or other funds ~~~~ 32

Net Assets or Fund Balances 33 Total net assets or fund balances ~~~~~~~~~~~~~~~~~~~~~~ 1,438,980. 33 1,476,833. 34 Total liabilities and net assets/fund balances 1,700,238. 34 1,790,650. Form 990 (2014)

432011 11‐07‐14 27 Form 990 (2014) THE TOR PROJECT, INC. 20‐8096820 Page 12 Part XI Reconciliation of Net Assets Check if Schedule O contains a response or note to any line in this Part XI

1 Total revenue (must equal Part VIII, column (A), line 12) ~~~~~~~~~~~~~~~~~~~~~~~~~~ 1 2,556,397. 2 Total expenses (must equal Part IX, column (A), line 25) ~~~~~~~~~~~~~~~~~~~~~~~~~~ 2 2,518,544. 3 Revenue less expenses. Subtract line 2 from line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3 37,853. 4 Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) ~~~~~~~~~~ 4 1,438,980. 5 Net unrealized gains (losses) on investments ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 5 6 Donated services and use of facilities ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 6 7 Investment expenses ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 7 8 Prior period adjustments ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 8 9 Other changes in net assets or fund balances (explain in Schedule O) ~~~~~~~~~~~~~~~~~~~ 9 0. 10 Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal Part X, line 33, column (B)) 10 1,476,833. Part XII Financial Statements and Reporting Check if Schedule O contains a response or note to any line in this Part XII X Yes No 1 Accounting method used to prepare the Form 990: Cash X Accrual Other If the organization changed its method of accounting from a prior year or checked "Other," explain in Schedule O. 2a Were the organization's financial statements compiled or reviewed by an independent accountant? ~~~~~~~~~~~~ 2a X If "Yes," check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both: Separate basis Consolidated basis Both consolidated and separate basis b Were the organization's financial statements audited by an independent accountant? ~~~~~~~~~~~~~~~~~~~ 2b X If "Yes," check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both: Separate basis X Consolidated basis Both consolidated and separate basis c If "Yes" to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?~~~~~~~~~~~~~~~ 2c X If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O. 3a As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A‐133? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3a X b If "Yes," did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits 3b X Form 990 (2014)

432012 11‐07‐14 28 SCHEDULE A OMB No. 1545‐0047 (Form 990 or 990‐EZ) Public Charity Status and Public Support Complete if the organization is a section 501(c)(3) organization or a section 2014 4947(a)(1) nonexempt charitable trust. Department of the Treasury | Attach to Form 990 or Form 990‐EZ. Open to Public Internal Revenue Service Inspection | Information about Schedule A (Form 990 or 990‐EZ) and its instructions is at www.irs.gov/form990. Name of the organization Employer identification number THE TOR PROJECT, INC. 20‐8096820 Part I Reason for Public Charity Status (All organizations must complete this part.) See instructions. The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.) 1 A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i). 2 A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.) 3 A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii). 4 A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name, city, and state: 5 An organization operated for the benefit of a college or university owned or operated by a governmental unit described in section 170(b)(1)(A)(iv). (Complete Part II.) 6 A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v). 7 X An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.) 8 A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.) 9 An organization that normally receives: (1) more than 33 1/3% of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions ‐ subject to certain exceptions, and (2) no more than 33 1/3% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.) 10 An organization organized and operated exclusively to test for public safety. See section 509(a)(4). 11 An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box in lines 11a through 11d that describes the type of supporting organization and complete lines 11e, 11f, and 11g. a Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. You must complete Part IV, Sections A and B. b Type II. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). You must complete Part IV, Sections A and C. c Type III functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV, Sections A, D, and E. d Type III non‐functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). You must complete Part IV, Sections A and D, and Part V. e Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type III functionally integrated, or Type III non‐functionally integrated supporting organization. f Enter the number of supported organizations ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ g Provide the following information about the supported organization(s). (i) Name of supported (ii) EIN (iii) Type of organization (iv) Is the organization (v) Amount of monetary (vi) Amount of organization (described on lines 1‐9 listed in your support (see other support (see governing document? above or IRC section Instructions) Instructions) (see instructions)) Yes No

Total LHA For Paperwork Reduction Act Notice, see the Instructions for Schedule A (Form 990 or 990‐EZ) 2014 Form 990 or 990‐EZ. 432021 09‐17‐14 29 Schedule A (Form 990 or 990‐EZ) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 2 Part II Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.) Section A. Public Support Calendar year (or fiscal year beginning in) | (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total 1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ~~ 20,090. 78,579. 443,440. 129,118. 288,667. 959,894. 2 Tax revenues levied for the organ‐ ization's benefit and either paid to or expended on its behalf ~~~~ 3 The value of services or facilities furnished by a governmental unit to the organization without charge ~ 4 Total. Add lines 1 through 3 ~~~ 20,090. 78,579. 443,440. 129,118. 288,667. 959,894. 5 The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f) ~~~~~~~~~~~~ 6 Public support. Subtract line 5 from line 4. 959,894. Section B. Total Support Calendar year (or fiscal year beginning in) | (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total 7 Amounts from line 4 ~~~~~~~ 20,090. 78,579. 443,440. 129,118. 288,667. 959,894. 8 Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources ~ 1,917. 1,753. 736. 1,152. 1,648. 7,206. 9 Net income from unrelated business activities, whether or not the business is regularly carried on ~ 10 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) ~~~~ 11,696. 2,293. 735. 14,724. 11 Total support. Add lines 7 through 10 981,824. 12 Gross receipts from related activities, etc. (see instructions) ~~~~~~~~~~~~~~~~~~~~~~~ 12 9,772,441. 13 First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here | Section C. Computation of Public Support Percentage 14 Public support percentage for 2014 (line 6, column (f) divided by line 11, column (f)) ~~~~~~~~~~~~ 14 97.77 % 15 Public support percentage from 2013 Schedule A, Part II, line 14 ~~~~~~~~~~~~~~~~~~~~~ 15 96.64 % 16a 33 1/3% support test ‐ 2014. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box and stop here. The organization qualifies as a publicly supported organization ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ | X b 33 1/3% support test ‐ 2013. If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check this box and stop here. The organization qualifies as a publicly supported organization ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ | 17a 10% ‐facts‐and‐circumstances test ‐ 2014. If the organization did not check a box on line 13, 16a, or 16b, and line 14 is 10% or more, and if the organization meets the "facts‐and‐circumstances" test, check this box and stop here. Explain in Part VI how the organization meets the "facts‐and‐circumstances" test. The organization qualifies as a publicly supported organization ~~~~~~~~~~~~~~~ | b 10% ‐facts‐and‐circumstances test ‐ 2013. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line 15 is 10% or more, and if the organization meets the "facts‐and‐circumstances" test, check this box and stop here. Explain in Part VI how the organization meets the "facts‐and‐circumstances" test. The organization qualifies as a publicly supported organization ~~~~~~~~ | 18 Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see instructions | Schedule A (Form 990 or 990‐EZ) 2014

432022 09‐17‐14 30 Schedule A (Form 990 or 990‐EZ) 2014 Page 3 Part III Support Schedule for Organizations Described in Section 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.) Section A. Public Support Calendar year (or fiscal year beginning in) | (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total 1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ~~ 2 Gross receipts from admissions, merchandise sold or services per‐ formed, or facilities furnished in any activity that is related to the organization's tax‐exempt purpose 3 Gross receipts from activities that are not an unrelated trade or bus‐ iness under section 513 ~~~~~ 4 Tax revenues levied for the organ‐ ization's benefit and either paid to or expended on its behalf ~~~~ 5 The value of services or facilities furnished by a governmental unit to the organization without charge ~ 6 Total. Add lines 1 through 5 ~~~ 7a Amounts included on lines 1, 2, and 3 received from disqualified persons b Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year ~~~~~~ c Add lines 7a and 7b ~~~~~~~

8 Public support (Subtract line 7c from line 6.) Section B. Total Support Calendar year (or fiscal year beginning in) | (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total 9 Amounts from line 6 ~~~~~~~ 10a Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources ~ b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975 ~~~~ c Add lines 10a and 10b ~~~~~~ 11 Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on ~~~~~~~ 12 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) ~~~~ 13 Total support. (Add lines 9, 10c, 11, and 12.) 14 First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here | Section C. Computation of Public Support Percentage 15 Public support percentage for 2014 (line 8, column (f) divided by line 13, column (f)) ~~~~~~~~~~~~ 15 % 16 Public support percentage from 2013 Schedule A, Part III, line 15 16 % Section D. Computation of Investment Income Percentage 17 Investment income percentage for 2014 (line 10c, column (f) divided by line 13, column (f)) ~~~~~~~~ 17 % 18 Investment income percentage from 2013 Schedule A, Part III, line 17 ~~~~~~~~~~~~~~~~~~ 18 % 19a 33 1/3% support tests ‐ 2014. If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization ~~~~~~~~~~ | b 33 1/3% support tests ‐ 2013. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3%, and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization~~~~ | 20 Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions | 432023 09‐17‐14 Schedule A (Form 990 or 990‐EZ) 2014 31 Schedule A (Form 990 or 990‐EZ) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 4 Part IV Supporting Organizations (Complete only if you checked a box on line 11 of Part I. If you checked 11a of Part I, complete Sections A and B. If you checked 11b of Part I, complete Sections A and C. If you checked 11c of Part I, complete Sections A, D, and E. If you checked 11d of Part I, complete Sections A and D, and complete Part V.) Section A. All Supporting Organizations Yes No 1 Are all of the organization's supported organizations listed by name in the organization's governing documents? If "No" describe in Part VI how the supported organizations are designated. If designated by class or purpose, describe the designation. If historic and continuing relationship, explain. 1 2 Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If "Yes," explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2). 2 3a Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If "Yes," answer (b) and (c) below. 3a b Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? If "Yes," describe in Part VI when and how the organization made the determination. 3b c Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2) (B) purposes? If "Yes," explain in Part VI what controls the organization put in place to ensure such use. 3c 4a Was any supported organization not organized in the United States ("foreign supported organization")? If "Yes" and if you checked 11a or 11b in Part I, answer (b) and (c) below. 4a b Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If "Yes," describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations. 4b c Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? If "Yes," explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes. 4c 5a Did the organization add, substitute, or remove any supported organizations during the tax year? If "Yes," answer (b) and (c) below (if applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of the supported organizations added, substituted, or removed, (ii) the reasons for each such action, (iii) the authority under the organization's organizing document authorizing such action, and (iv) how the action was accomplished (such as by amendment to the organizing document). 5a b Type I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization's organizing document? 5b c Substitutions only. Was the substitution the result of an event beyond the organization's control? 5c 6 Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (a) its supported organizations; (b) individuals that are part of the charitable class benefited by one or more of its supported organizations; or (c) other supporting organizations that also support or benefit one or more of the filing organization's supported organizations? If "Yes," provide detail in Part VI. 6 7 Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (defined in IRC 4958(c)(3)(C)), a family member of a substantial contributor, or a 35‐percent controlled entity with regard to a substantial contributor? If "Yes," complete Part I of Schedule L (Form 990). 7 8 Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If "Yes," complete Part I of Schedule L (Form 990). 8 9a Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If "Yes," provide detail in Part VI. 9a b Did one or more disqualified persons (as defined in line 9(a)) hold a controlling interest in any entity in which the supporting organization had an interest? If "Yes," provide detail in Part VI. 9b c Did a disqualified person (as defined in line 9(a)) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If "Yes," provide detail in Part VI. 9c 10a Was the organization subject to the excess business holdings rules of IRC 4943 because of IRC 4943(f) (regarding certain Type II supporting organizations, and all Type III non‐functionally integrated supporting organizations)? If "Yes," answer (b) below. 10a b Did the organization have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings.) 10b 432024 09‐17‐14 Schedule A (Form 990 or 990‐EZ) 2014 32 Schedule A (Form 990 or 990‐EZ) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 5 Part IV Supporting Organizations (continued) Yes No 11 Has the organization accepted a gift or contribution from any of the following persons? a A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below, the governing body of a supported organization? 11a b A family member of a person described in (a) above? 11b c A 35% controlled entity of a person described in (a) or (b) above? If "Yes" to a, b, or c, provide detail in Part VI. 11c Section B. Type I Supporting Organizations Yes No 1 Did the directors, trustees, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization's directors or trustees at all times during the tax year? If "No," describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization's activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year. 1 2 Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If "Yes," explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised, or controlled the supporting organization. 2 Section C. Type II Supporting Organizations Yes No 1 Were a majority of the organization's directors or trustees during the tax year also a majority of the directors or trustees of each of the organization's supported organization(s)? If "No," describe in Part VI how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s). 1 Section D. Type III Supporting Organizations Yes No 1 Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization's tax year, (1) a written notice describing the type and amount of support provided during the prior tax year, (2) a copy of the Form 990 that was most recently filed as of the date of notification, and (3) copies of the organization's governing documents in effect on the date of notification, to the extent not previously provided? 1 2 Were any of the organization's officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? If "No," explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s). 2 3 By reason of the relationship described in (2), did the organization's supported organizations have a significant voice in the organization's investment policies and in directing the use of the organization's income or assets at all times during the tax year? If "Yes," describe in Part VI the role the organization's supported organizations played in this regard. 3 Section E. Type III Functionally‐Integrated Supporting Organizations 1 Check the box next to the method that the organization used to satisfy the Integral Part Test during the year(see instructions): a The organization satisfied the Activities Test. Complete line 2 below. b The organization is the parent of each of its supported organizations. Complete line 3 below. c The organization supported a governmental entity. Describe in Part VI how you supported a government entity (see instructions). 2 Activities Test. Answer (a) and (b) below. Yes No a Did substantially all of the organization's activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? If "Yes," then in Part VI identify those supported organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities. 2a b Did the activities described in (a) constitute activities that, but for the organization's involvement, one or more of the organization's supported organization(s) would have been engaged in? If "Yes," explain in Part VI the reasons for the organization's position that its supported organization(s) would have engaged in these activities but for the organization's involvement. 2b 3 Parent of Supported Organizations. Answer (a) and (b) below. a Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Provide details in Part VI. 3a b Did the organization exercise a substantial degree of direction over the policies, programs, and activities of each of its supported organizations? If "Yes," describe in Part VI the role played by the organization in this regard. 3b 432025 09‐17‐14 Schedule A (Form 990 or 990‐EZ) 2014 33 Schedule A (Form 990 or 990‐EZ) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 6 Part V Type III Non‐Functionally Integrated 509(a)(3) Supporting Organizations 1 Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov. 20, 1970. See instructions. All other Type III non‐functionally integrated supporting organizations must complete Sections A through E. (B) Current Year Section A ‐ Adjusted Net Income (A) Prior Year (optional) 1 Net short‐term capital gain 1 2 Recoveries of prior‐year distributions 2 3 Other gross income (see instructions) 3 4 Add lines 1 through 3 4 5 Depreciation and depletion 5 6 Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions) 6 7 Other expenses (see instructions) 7 8 Adjusted Net Income (subtract lines 5, 6 and 7 from line 4) 8 (B) Current Year Section B ‐ Minimum Asset Amount (A) Prior Year (optional) 1 Aggregate fair market value of all non‐exempt‐use assets (see instructions for short tax year or assets held for part of year): a Average monthly value of securities 1a b Average monthly cash balances 1b c Fair market value of other non‐exempt‐use assets 1c d Total (add lines 1a, 1b, and 1c) 1d e Discount claimed for blockage or other factors (explain in detail in Part VI): 2 Acquisition indebtedness applicable to non‐exempt‐use assets 2 3 Subtract line 2 from line 1d 3 4 Cash deemed held for exempt use. Enter 1‐1/2% of line 3 (for greater amount, see instructions). 4 5 Net value of non‐exempt‐use assets (subtract line 4 from line 3) 5 6 Multiply line 5 by .035 6 7 Recoveries of prior‐year distributions 7 8 Minimum Asset Amount (add line 7 to line 6) 8

Section C ‐ Distributable Amount Current Year

1 Adjusted net income for prior year (from Section A, line 8, Column A) 1 2 Enter 85% of line 1 2 3 Minimum asset amount for prior year (from Section B, line 8, Column A) 3 4 Enter greater of line 2 or line 3 4 5 Income tax imposed in prior year 5 6 Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions) 6 7 Check here if the current year is the organization's first as a non‐functionally‐integrated Type III supporting organization (see instructions). Schedule A (Form 990 or 990‐EZ) 2014

432026 09‐17‐14 34 Schedule A (Form 990 or 990‐EZ) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 7 Part V Type III Non‐Functionally Integrated 509(a)(3) Supporting Organizations (continued) Section D ‐ Distributions Current Year 1 Amounts paid to supported organizations to accomplish exempt purposes 2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity 3 Administrative expenses paid to accomplish exempt purposes of supported organizations 4 Amounts paid to acquire exempt‐use assets 5 Qualified set‐aside amounts (prior IRS approval required) 6 Other distributions (describe in Part VI). See instructions. 7 Total annual distributions. Add lines 1 through 6. 8 Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions. 9 Distributable amount for 2014 from Section C, line 6 10 Line 8 amount divided by Line 9 amount (i) (ii) (iii) Excess Distributions Underdistributions Distributable Section E ‐ Distribution Allocations (see instructions) Pre‐2014 Amount for 2014 1 Distributable amount for 2014 from Section C, line 6 2 Underdistributions, if any, for years prior to 2014 (reasonable cause required‐see instructions) 3 Excess distributions carryover, if any, to 2014: a b c d e From 2013 f Total of lines 3a through e g Applied to underdistributions of prior years h Applied to 2014 distributable amount i Carryover from 2009 not applied (see instructions) j Remainder. Subtract lines 3g, 3h, and 3i from 3f. 4 Distributions for 2014 from Section D, line 7: $ a Applied to underdistributions of prior years b Applied to 2014 distributable amount c Remainder. Subtract lines 4a and 4b from 4. 5 Remaining underdistributions for years prior to 2014, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions). 6 Remaining underdistributions for 2014. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions). 7 Excess distributions carryover to 2015. Add lines 3j and 4c. 8 Breakdown of line 7: a b c d Excess from 2013 e Excess from 2014 Schedule A (Form 990 or 990‐EZ) 2014

432027 09‐17‐14 35 Schedule A (Form 990 or 990‐EZ) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 8 Part VI Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; and Part III, line 12. Also complete this part for any additional information. (See instructions).

432028 09‐17‐14 Schedule A (Form 990 or 990‐EZ) 2014 36 OMB No. 1545‐0047 SCHEDULE D Supplemental Financial Statements (Form 990) | Complete if the organization answered "Yes" to Form 990, Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b. 2014 Department of the Treasury | Attach to Form 990. Open to Public Inspection Internal Revenue Service | Information about Schedule D (Form 990) and its instructions is at www.irs.gov/form990. Name of the organization Employer identification number THE TOR PROJECT, INC. 20‐8096820 Part I Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6. (a) Donor advised funds (b) Funds and other accounts 1 Total number at end of year ~~~~~~~~~~~~~~~ 2 Aggregate value of contributions to (during year) ~~~~ 3 Aggregate value of grants from (during year) ~~~~~~ 4 Aggregate value at end of year ~~~~~~~~~~~~~ 5 Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization's property, subject to the organization's exclusive legal control?~~~~~~~~~~~~~~~~~~ Yes No 6 Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? Yes No Part II Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7. 1 Purpose(s) of conservation easements held by the organization (check all that apply). Preservation of land for public use (e.g., recreation or education) Preservation of a historically important land area Protection of natural habitat Preservation of a certified historic structure Preservation of open space 2 Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year. Held at the End of the Tax Year a Total number of conservation easements ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2a b Total acreage restricted by conservation easements ~~~~~~~~~~~~~~~~~~~~~~~~~~ 2b c Number of conservation easements on a certified historic structure included in (a) ~~~~~~~~~~~~ 2c d Number of conservation easements included in (c) acquired after 8/17/06, and not on a historic structure listed in the National Register ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2d 3 Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during the tax year | 4 Number of states where property subject to conservation easement is located | 5 Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and enforcement of the conservation easements it holds? ~~~~~~~~~~~~~~~~~~~~~~~~~ Yes No 6 Staff and volunteer hours devoted to monitoring, inspecting, and enforcing conservation easements during the year | 7 Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year | $ 8 Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i) and section 170(h)(4)(B)(ii)? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes No 9 In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement, and balance sheet, and include, if applicable, the text of the footnote to the organization's financial statements that describes the organization's accounting for conservation easements. Part III Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. Complete if the organization answered "Yes" to Form 990, Part IV, line 8. 1a If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part XIII, the text of the footnote to its financial statements that describes these items. b If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items: (i) Revenue included in Form 990, Part VIII, line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ | $ (ii) Assets included in Form 990, Part X ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ | $ 2 If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the following amounts required to be reported under SFAS 116 (ASC 958) relating to these items: a Revenue included in Form 990, Part VIII, line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ | $ b Assets included in Form 990, Part X ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ | $

LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule D (Form 990) 2014 432051 10‐01‐14 37 Schedule D (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 2 Part III Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets(continued) 3 Using the organization's acquisition, accession, and other records, check any of the following that are a significant use of its collection items (check all that apply): a Public exhibition d Loan or exchange programs b Scholarly research e Other c Preservation for future generations 4 Provide a description of the organization's collections and explain how they further the organization's exempt purpose in Part XIII. 5 During the year, did the organization solicit or receive donations of art, historical treasures, or other similar assets to be sold to raise funds rather than to be maintained as part of the organization's collection? Yes No Part IV Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21. 1a Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not included on Form 990, Part X? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes X No b If "Yes," explain the arrangement in Part XIII and complete the following table: Amount c Beginning balance ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1c d Additions during the year ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1d e Distributions during the year ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1e f Ending balance ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1f 2a Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability? ~~~~~ X Yes No b If "Yes," explain the arrangement in Part XIII. Check here if the explanation has been provided in Part XIII X Part V Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10. (a) Current year (b) Prior year (c) Two years back (d) Three years back (e) Four years back 1a Beginning of year balance ~~~~~~~ b Contributions ~~~~~~~~~~~~~~ c Net investment earnings, gains, and losses d Grants or scholarships ~~~~~~~~~ e Other expenditures for facilities and programs ~~~~~~~~~~~~~ f Administrative expenses ~~~~~~~~ g End of year balance ~~~~~~~~~~ 2 Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as: a Board designated or quasi‐endowment | % b Permanent endowment | % c Temporarily restricted endowment | % The percentages in lines 2a, 2b, and 2c should equal 100%. 3a Are there endowment funds not in the possession of the organization that are held and administered for the organization by: Yes No (i) unrelated organizations ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3a(i) (ii) related organizations ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3a(ii) b If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? ~~~~~~~~~~~~~~~~~~~~~~ 3b 4 Describe in Part XIII the intended uses of the organization's endowment funds. Part VI Land, Buildings, and Equipment. Complete if the organization answered "Yes" to Form 990, Part IV, line 11a. See Form 990, Part X, line 10. Description of property (a) Cost or other (b) Cost or other (c) Accumulated (d) Book value basis (investment) basis (other) depreciation 1a Land ~~~~~~~~~~~~~~~~~~~~ b Buildings ~~~~~~~~~~~~~~~~~~ c Leasehold improvements ~~~~~~~~~~ d Equipment ~~~~~~~~~~~~~~~~~ 24,004. 24,004. 0. e Other Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10c.) | 0. Schedule D (Form 990) 2014

432052 10‐01‐14 38 Schedule D (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 3 Part VII Investments ‐ Other Securities. Complete if the organization answered "Yes" to Form 990, Part IV, line 11b. See Form 990, Part X, line 12. (a) Description of security or category (including name of security) (b) Book value (c) Method of valuation: Cost or end‐of‐year market value (1) Financial derivatives ~~~~~~~~~~~~~~~ (2) Closely‐held equity interests ~~~~~~~~~~~ (3) Other (A) (B) (C) (D) (E) (F) (G) (H) Total. (Col. (b) must equal Form 990, Part X, col. (B) line 12.) | Part VIII Investments ‐ Program Related. Complete if the organization answered "Yes" to Form 990, Part IV, line 11c. See Form 990, Part X, line 13. (a) Description of investment (b) Book value (c) Method of valuation: Cost or end‐of‐year market value (1) (2) (3) (4) (5) (6) (7) (8) (9) Total. (Col. (b) must equal Form 990, Part X, col. (B) line 13.) | Part IX Other Assets. Complete if the organization answered "Yes" to Form 990, Part IV, line 11d. See Form 990, Part X, line 15. (a) Description (b) Book value (1) (2) (3) (4) (5) (6) (7) (8) (9) Total. (Column (b) must equal Form 990, Part X, col. (B) line 15.) | Part X Other Liabilities. Complete if the organization answered "Yes" to Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25. 1. (a) Description of liability (b) Book value (1) Federal income taxes (2) (3) (4) (5) (6) (7) (8) (9) Total. (Column (b) must equal Form 990, Part X, col. (B) line 25.) | 2. Liability for uncertain tax positions. In Part XIII, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC 740). Check here if the text of the footnote has been provided in Part XIII X Schedule D (Form 990) 2014

432053 10‐01‐14 39 Schedule D (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 4 Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return. Complete if the organization answered "Yes" to Form 990, Part IV, line 12a. 1 Total revenue, gains, and other support per audited financial statements ~~~~~~~~~~~~~~~~~~~ 1 2,983,397. 2 Amounts included on line 1 but not on Form 990, Part VIII, line 12: a Net unrealized gains (losses) on investments ~~~~~~~~~~~~~~~~~~ 2a b Donated services and use of facilities ~~~~~~~~~~~~~~~~~~~~~~ 2b 427,000. c Recoveries of prior year grants ~~~~~~~~~~~~~~~~~~~~~~~~~ 2c d Other (Describe in Part XIII.) ~~~~~~~~~~~~~~~~~~~~~~~~~~ 2d e Add lines 2a through 2d ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2e 427,000. 3 Subtract line 2e from line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3 2,556,397. 4 Amounts included on Form 990, Part VIII, line 12, but not on line 1: a Investment expenses not included on Form 990, Part VIII, line 7b ~~~~~~~~ 4a b Other (Describe in Part XIII.) ~~~~~~~~~~~~~~~~~~~~~~~~~~ 4b c Add lines 4a and 4b ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4c 0. 5 Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) 5 2,556,397. Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered "Yes" to Form 990, Part IV, line 12a. 1 Total expenses and losses per audited financial statements ~~~~~~~~~~~~~~~~~~~~~~~~~~ 1 2,945,544. 2 Amounts included on line 1 but not on Form 990, Part IX, line 25: a Donated services and use of facilities ~~~~~~~~~~~~~~~~~~~~~~ 2a 427,000. b Prior year adjustments ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2b c Other losses ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2c d Other (Describe in Part XIII.) ~~~~~~~~~~~~~~~~~~~~~~~~~~ 2d e Add lines 2a through 2d ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2e 427,000. 3 Subtract line 2e from line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3 2,518,544. 4 Amounts included on Form 990, Part IX, line 25, but not on line 1: a Investment expenses not included on Form 990, Part VIII, line 7b ~~~~~~~~ 4a b Other (Describe in Part XIII.) ~~~~~~~~~~~~~~~~~~~~~~~~~~ 4b c Add lines 4a and 4b ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4c 0. 5 Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) 5 2,518,544. Part XIII Supplemental Information. Provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part IV, lines 1b and 2b; Part V, line 4; Part X, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information.

PART IV, LINE 2B:

TOR, ALONG WITH OTHER SPONSORS, ACTS AS AN AGENT ON BEHALF OF THE PRIVACY

ENHANCING TECHNOLOGY SYMPOSIUM (THE "CONFERENCE") BY PERFORMING

ADMINISTRATIVE FUNCTIONS, INCLUDING CUSTODY OF THE CONFERENCE'S OPERATING

CASH ACCOUNT AND PERFORMANCE OF THE CASH RECEIPTS AND CASH DISBURSEMENTS

FUNCTIONS. FUNDS HELD FOR THE CONFERENCE ARE SEGREGATED FROM THE GENERAL

ASSETS OF TOR AND ARE SHOWN ON THE CONSOLIDATED STATEMENTS OF FINANCIAL

POSITION AS AN ASSET AND A CORRESPONDING LIABILITY IN THE AMOUNTS OF

$49,718 AND $51,973, AS OF DECEMBER 31, 2014 AND 2013, RESPECTIVELY. NO

FEES ARE CHARGED BY TOR FOR THESE SERVICES.

PART X, LINE 2: 432054 10‐01‐14 Schedule D (Form 990) 2014 40 Schedule D (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 5 Part XIII Supplemental Information (continued)

THE ORGANIZATION IS A NONPROFIT CORPORATION AS DESCRIBED IN SECTION

501(C)(3) OF THE INTERNAL REVENUE CODE AND IS EXEMPT FROM FEDERAL AND

STATE INCOME TAXES. THE AFFILIATE IS A DISREGARDED ENTITY FOR TAX

PURPOSES. AS A RESULT, NO PROVISION FOR INCOME TAXES IS PRESENTED IN

THESE CONSOLIDATED FINANCIAL STATEMENTS. HOWEVER, IN CERTAIN

CIRCUMSTANCES, THE ORGANIZATION MAY BE SUBJECT TO FEDERAL AND STATE INCOME

TAXES FOR PROFITS GENERATED FROM UNRELATED TRADE OR BUSINESS INCOME. THE

ORGANIZATION HAS DETERMINED THAT IT DOES NOT HAVE ANY LIABILITIES

ASSOCIATED WITH UNRELATED TRADE OR BUSINESS INCOME.

THE ORGANIZATION ASSESSES THE RECORDING OF UNCERTAIN TAX POSITIONS BY

EVALUATING THE MINIMUM RECOGNITION THRESHOLD AND MEASUREMENT REQUIREMENTS

A TAX POSITION MUST MEET BEFORE BEING RECOGNIZED AS A BENEFIT IN THE

FINANCIAL STATEMENTS. THE ORGANIZATIONS POLICY IS TO RECOGNIZE INTEREST

AND PENALTIES ACCRUED ON ANY UNCERTAIN TAX POSITIONS AS A COMPONENT OF

INCOME TAX EXPENSE, IF ANY, IN ITS CONSOLIDATED STATEMENTS OF ACTIVITIES.

THE ORGANIZATION HAS NOT RECOGNIZED ANY LIABILITIES FOR UNCERTAIN TAX

POSITIONS OR UNRECOGNIZED BENEFITS AS OF DECEMBER 31, 2014 OR 2013. THE

ORGANIZATION DOES NOT EXPECT ANY MATERIAL CHANGE IN UNCERTAIN TAX BENEFITS

WITHIN THE NEXT TWELVE MONTHS. THE ORGANIZATION IS CURRENTLY NOT UNDER

EXAMINATION BY ANY TAXING AUTHORITIES AND IS GENERALLY OPEN TO EXAMINATION

FOR THREE YEARS FROM THE DATE OF FILING.

Schedule D (Form 990) 2014 432055 10‐01‐14 41 SCHEDULE F Statement of Activities Outside the United States OMB No. 1545‐0047 (Form 990) | Complete if the organization answered "Yes" on Form 990, Part IV, line 14b, 15, or 16. 2014 | Attach to Form 990. Department of the Treasury Open to Public Internal Revenue Service | Information about Schedule F (Form 990) and its instructions is at www.irs.gov/form990. Inspection Name of the organization Employer identification number

THE TOR PROJECT, INC. 20‐8096820 Part I General Information on Activities Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 14b. 1 For grantmakers. Does the organization maintain records to substantiate the amount of its grants and other assistance, the grantees' eligibility for the grants or assistance, and the selection criteria used to award the grants or assistance? ~~ X Yes No

2 For grantmakers. Describe in Part V the organization's procedures for monitoring the use of its grants and other assistance outside the United States. 3 Activities per Region. (The following Part I, line 3 table can be duplicated if additional space is needed.) (a) Region (b) Number of (c) Number of (d) Activities conducted in region (e) If activity listed in (d) (f) Total offices employees, (by type) (e.g., fundraising, program is a program service, expenditures agents, and in the region services, investments, grants to describe specific type for and independent investments contractors recipients located in the region) of service(s) in region in region in region

COMPUTER RESEARCH NORTH AMERICA 0 0 RESEARCH & DEVELOPMENT SERVICES 10,000.

3 a Sub‐total ~~~~~~ 0 0 10,000. b Total from continuation sheets to Part I ~~~ 0 0 0. c Totals (add lines 3a and 3b) 0 0 10,000. LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule F (Form 990) 2014

432071 09‐24‐14 42 Schedule F (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 2 Part II Grants and Other Assistance to Organizations or Entities Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 15, for any recipient who received more than $5,000. Part II can be duplicated if additional space is needed.

1 (b) IRS code section (d) Purpose of (e) Amount (f) Manner of (g) Amount of (h) Description (i) Method of (a) Name of organization (c) Region non‐cash of non‐cash valuation (book, FMV, and EIN (if applicable) grant of cash grant cash disbursement assistance assistance appraisal, other)

COMPUTER RESEARCH NORTH AMERICA SERVICES 10,000.CHECK 0.N/A N/A

2 Enter total number of recipient organizations listed above that are recognized as charities by the foreign country, recognized as tax‐exempt by the IRS, or for which the grantee or counsel has provided a section 501(c)(3) equivalency letter ~~~~~~~~~~~~~~~~~~~~~~~ | 1 3 Enter total number of other organizations or entities | 1 Schedule F (Form 990) 2014

432072 09‐24‐14 43 Schedule F (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 3 Part III Grants and Other Assistance to Individuals Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 16. Part III can be duplicated if additional space is needed. (c) Number of (d) Amount of (e) Manner of (f) Amount of (g) Description of (h) Method of (a) Type of grant or assistance (b) Region recipients cash grant cash disbursement non‐cash non‐cash assistance valuation assistance (book, FMV, appraisal, other)

Schedule F (Form 990) 2014

432073 09‐24‐14 44 Schedule F (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 4 Part IV Foreign Forms

1 Was the organization a U.S. transferor of property to a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation (see Instructions for Form 926) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes X No

2 Did the organization have an interest in a foreign trust during the tax year? If "Yes," the organization may be required to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, and/or Form 3520‐A, Annual Information Return of Foreign Trust With a U.S. Owner (see Instructions for Forms 3520 and 3520‐A; do not file with Form 990) ~~~~~~~~~~~~~~~ Yes X No

3 Did the organization have an ownership interest in a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations (see Instructions for Form 5471) ~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes X No

4 Was the organization a direct or indirect shareholder of a passive foreign investment company or a qualified electing fund during the tax year? If "Yes," the organization may be required to file Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund (see Instructions for Form 8621) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes X No

5 Did the organization have an ownership interest in a foreign partnership during the tax year? If "Yes," the organization may be required to file Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships (see Instructions for Form 8865) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes X No

6 Did the organization have any operations in or related to any boycotting countries during the tax year? If "Yes," the organization may be required to file Form 5713, International Boycott Report (see Instructions for Form 5713; do not file with Form 990) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes X No

Schedule F (Form 990) 2014

432074 09‐24‐14 45 Schedule F (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 5 Part V Supplemental Information Provide the information required by Part I, line 2 (monitoring of funds); Part I, line 3, column (f) (accounting method; amounts of investments vs. expenditures per region); Part II, line 1 (accounting method); Part III (accounting method); and Part III, column (c) (estimated number of recipients), as applicable. Also complete this part to provide any additional information.

PART I, LINE 2:

THE ORGANIZATION MAINTAINS SELECTION CRITERIA TO SELECT THE RECIPIENTS OF

GRANTS TO ENSURE THE RECIPIENT IS QUALIFIED TO PERFORM THE SERVICES

REQUIRED UNDER THE GRANT.

432075 09‐24‐14 Schedule F (Form 990) 2014 46 SCHEDULE J Compensation Information OMB No. 1545‐0047 (Form 990) For certain Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees 2014 | Complete if the organization answered "Yes" on Form 990, Part IV, line 23. Open to Public Department of the Treasury | Attach to Form 990. Inspection Internal Revenue Service | Information about Schedule J (Form 990) and its instructions is at www.irs.gov/form990. Name of the organization Employer identification number THE TOR PROJECT, INC. 20‐8096820 Part I Questions Regarding Compensation Yes No 1a Check the appropriate box(es) if the organization provided any of the following to or for a person listed in Form 990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items. First‐class or charter travel Housing allowance or residence for personal use Travel for companions Payments for business use of personal residence Tax indemnification and gross‐up payments Health or social club dues or initiation fees Discretionary spending account Personal services (e.g., maid, chauffeur, chef)

b If any of the boxes on line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If "No," complete Part III to explain~~~~~~~~~~~ 1b 2 Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all directors, trustees, and officers, including the CEO/Executive Director, regarding the items checked in line 1a? ~~~~~~~~~~~~ 2

3 Indicate which, if any, of the following the filing organization used to establish the compensation of the organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III. Compensation committee Written employment contract Independent compensation consultant Compensation survey or study Form 990 of other organizations X Approval by the board or compensation committee

4 During the year, did any person listed in Form 990, Part VII, Section A, line 1a, with respect to the filing organization or a related organization: a Receive a severance payment or change‐of‐control payment? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4a X b Participate in, or receive payment from, a supplemental nonqualified retirement plan? ~~~~~~~~~~~~~~~~~~~~ 4b X c Participate in, or receive payment from, an equity‐based compensation arrangement?~~~~~~~~~~~~~~~~~~~~ 4c X If "Yes" to any of lines 4a‐c, list the persons and provide the applicable amounts for each item in Part III.

Only section 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5‐9. 5 For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the revenues of: a The organization? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 5a X b Any related organization? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 5b X If "Yes" to line 5a or 5b, describe in Part III. 6 For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the net earnings of: a The organization? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 6a X b Any related organization? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 6b X If "Yes" to line 6a or 6b, describe in Part III. 7 For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non‐fixed payments not described in lines 5 and 6? If "Yes," describe in Part III ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 7 X 8 Were any amounts reported in Form 990, Part VII, paid or accrued pursuant to a contract that was subject to the initial contract exception described in Regulations section 53.4958‐4(a)(3)? If "Yes," describe in Part III ~~~~~~~~~~~ 8 X 9 If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958‐6(c)? 9 LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule J (Form 990) 2014

432111 10‐13‐14 47 Schedule J (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 2 Part II Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed. For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the instructions, on row (ii). Do not list any individuals that are not listed on Form 990, Part VII. Note. The sum of columns (B)(i)‐(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual.

(B) Breakdown of W‐2 and/or 1099‐MISC compensation (C) Retirement and (D) Nontaxable (E) Total of columns (F) Compensation other deferred benefits (B)(i)‐(D) in column (B) (i) Base (ii) Bonus & (iii) Other (A) Name and Title compensation reported as deferred compensation incentive reportable in prior Form 990 compensation compensation

(1) NICK MATHEWSON (i) 135,000. 0. 0. 0. 18,675. 153,675. 0. V.P./CHIEF ARCHITECT (ii) 0. 0. 0. 0. 0. 0. 0. (2) ANDREW LEWMAN (i) 150,000. 0. 0. 3,000. 18,700. 171,700. 0. TREAS/CLERK/EXEC DIR (ii) 0. 0. 0. 0. 0. 0. 0. (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) Schedule J (Form 990) 2014 432112 10‐13‐14 48 Schedule J (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 3 Part III Supplemental Information Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information.

Schedule J (Form 990) 2014

432113 10‐13‐14 49 SCHEDULE O Supplemental Information to Form 990 or 990‐EZ OMB No. 1545‐0047 (Form 990 or 990‐EZ) Complete to provide information for responses to specific questions on Form 990 or 990‐EZ or to provide any additional information. 2014 Department of the Treasury | Attach to Form 990 or 990‐EZ. Open to Public Internal Revenue Service | Information about Schedule O (Form 990 or 990‐EZ) and its instructions is at www.irs.gov/form990. Inspection Name of the organization Employer identification number THE TOR PROJECT, INC. 20‐8096820

FORM 990, PART III, LINE 1, DESCRIPTION OF ORGANIZATION MISSION:

SUCH TOOLS, PROGRAMS AND RELATED ISSUES AROUND THE WORLD; (C) TO

EDUCATE THE GENERAL PUBLIC AROUND THE WORLD ABOUT PRIVACY RIGHTS AND

ANONYMITY ISSUES CONNECTED TO INTERNET USE; AND (D) TO CARRY OUT AND

CONDUCT SUCH OTHER ACTIVITIES AND PROGRAMS IN FURTHERANCE OF THE

FOREGOING PURPOSES AS MAY BE CARRIED OUT AND CONDUCTED BY A CORPORATION

ORGANIZED UNDER CHAPTER 180 OF THE MASSACHUSETTS GENERAL LAWS.

FORM 990, PART VI, SECTION B, LINE 11:

A COPY OF THE FORM 990 IS REVIEWED BY THE EXECUTIVE DIRECTOR AND CFO. A

FINAL VERSION IS SENT TO THE BOARD OF DIRECTORS ONE WEEK BEFORE IT IS

FILED.

FORM 990, PART VI, SECTION B, LINE 12C:

MEMBERS MUST SIGN THE CONFLICT OF INTEREST POLICY STATEMENT ANNUALLY. IF

CONFLICTS ARISE DURING THE YEAR THEY ARE DISCUSSED WITH THE BOARD OF

DIRECTORS AND HANDLED TIMELY AND APPROPRIATELY.

FORM 990, PART VI, SECTION B, LINE 15:

SALARY AND CONTRACTOR COMPENSATION MUST BE APPROVED BY THE BOARD. THE BOARD

LOOKS AT INDUSTRY PAY SCALES AND PAYS AT THE LOWER END OF THE SCALE.

FORM 990, PART VI, SECTION C, LINE 18:

THE GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE

PUBLIC UPON REQUEST.

LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990‐EZ. Schedule O (Form 990 or 990‐EZ) (2014) 432211 08‐27‐14 50 Schedule O (Form 990 or 990‐EZ) (2014) Page 2 Name of the organization Employer identification number THE TOR PROJECT, INC. 20‐8096820

FORM 990, PART VI, SECTION C, LINE 19:

THE GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE

PUBLIC UPON REQUEST.

FORM 990; PART XII, LINE 2C:

THE ORGANIZATION HAS AN AUDIT COMMITTEE THAT ASSUMES RESPONSIBILITY FOR

OVERSIGHT OF THE AUDIT OF THE ORGANIZATION'S FINANCIAL STATEMENTS AND

SELECTION OF THE INDEPENDENT AUDITORS. THE PROCESS HAS NOT CHANGED

DURING THE YEAR.

432212 08‐27‐14 Schedule O (Form 990 or 990‐EZ) (2014) 51 OMB No. 1545‐0047 SCHEDULE R Related Organizations and Unrelated Partnerships (Form 990) |Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37. 2014 | Attach to Form 990. Department of the Treasury Open to Public Internal Revenue Service |Information about Schedule R (Form 990) and its instructions is at www.irs.gov/form990. Inspection Name of the organization Employer identification number THE TOR PROJECT, INC. 20‐8096820

Part I Identification of Disregarded Entities Complete if the organization answered "Yes" on Form 990, Part IV, line 33.

(a) (b) (c) (d) (e) (f) Name, address, and EIN (if applicable) Primary activity Legal domicile (state or Total income End‐of‐year assets Direct controlling of disregarded entity foreign country) entity

TOR SOLUTIONS CORPORATION - 45-2619704 DESIGN & DEVELOPMENT OF 7 TEMPLE STREET, SUITE A SOFTWARE FOR INTERNET-BASED CAMBRIDGE, MA 02139 COMMUNICATION MASSACHUSETTS 0. 65,633.THE TOR PROJECT, INC.

Identification of Related Tax‐Exempt Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax‐exempt Part II organizations during the tax year. (a) (b) (c) (d) (e) (f) (g) Section 512(b)(13) Name, address, and EIN Primary activity Legal domicile (state or Exempt Code Public charity Direct controlling controlled of related organization foreign country) section status (if section entity entity? 501(c)(3)) Yes No

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule R (Form 990) 2014

432161 08‐14‐14 LHA 52 Schedule R (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 2

Part III Identification of Related Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year. (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Legal Predominant income General or Name, address, and EIN Primary activity domicile Direct controlling Share of total Share of Disproportionate Code V‐UBI Percentage of related organization entity (related, unrelated, income end‐of‐year amount in box managing ownership (state or allocations? partner? foreign excluded from tax under assets 20 of Schedule country) sections 512‐514) Yes No K‐1 (Form 1065) Yes No

Part IV Identification of Related Organizations Taxable as a Corporation or Trust Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year. (a) (b) (c) (d) (e) (f) (g) (h) (i) Section Name, address, and EIN Primary activity Legal domicile Direct controlling Type of entity Share of total Share of Percentage 512(b)(13) of related organization (state or entity (C corp, S corp, income end‐of‐year ownership controlled foreign or trust) assets entity? country) Yes No

432162 08‐14‐14 53 Schedule R (Form 990) 2014 Schedule R (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 3

Part V Transactions With Related Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36.

Note. Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule. Yes No 1 During the tax year, did the organization engage in any of the following transactions with one or more related organizations listed in Parts II‐IV? a Receipt of (i) interest, (ii) annuities, (iii) royalties, or (iv) rent from a controlled entity ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1a b Gift, grant, or capital contribution to related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1b c Gift, grant, or capital contribution from related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1c d Loans or loan guarantees to or for related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1d e Loans or loan guarantees by related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1e

f Dividends from related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1f g Sale of assets to related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1g h Purchase of assets from related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1h i Exchange of assets with related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1i j Lease of facilities, equipment, or other assets to related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1j

k Lease of facilities, equipment, or other assets from related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1k l Performance of services or membership or fundraising solicitations for related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1l m Performance of services or membership or fundraising solicitations by related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1m n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1n o Sharing of paid employees with related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1o

p Reimbursement paid to related organization(s) for expenses ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1p q Reimbursement paid by related organization(s) for expenses~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1q

r Other transfer of cash or property to related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1r s Other transfer of cash or property from related organization(s) 1s 2 If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds. (a) (b) (c) (d) Name of related organization Transaction Amount involved Method of determining amount involved type (a‐s)

(1)

(2)

(3)

(4)

(5)

(6) 432163 08‐14‐14 54 Schedule R (Form 990) 2014 Schedule R (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 4

Part VI Unrelated Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 37.

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships. (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Are all Name, address, and EIN Primary activity Legal domicile Predominant income partners sec. Share of Share of Dispropor‐ Code V‐UBI General or Percentage managing of entity (state or foreign (related, unrelated, 501(c)(3) total end‐of‐year tionate amount in box 20 ownership excluded from tax under orgs.? allocations? of Schedule K‐1 partner? country) income assets sections 512‐514) Yes No Yes No (Form 1065) Yes No

Schedule R (Form 990) 2014

432164 08‐14‐14 55 Schedule R (Form 990) 2014 THE TOR PROJECT, INC. 20‐8096820 Page 5 Part VII Supplemental Information Provide additional information for responses to questions on Schedule R (see instructions).

432165 08‐14‐14 Schedule R (Form 990) 2014 56

THE TOR PROJECT, INC. AND SUBSIDIARY

CONSOLIDATED FINANCIAL STATEMENTS AND REPORTS REQUIRED FOR AUDITS IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS AND OMB CIRCULAR A-133

DECEMBER 31, 2014 AND 2013

Proactive CPA and Consulting Firm

To the Board of Directors The Tor Project, Inc. and Subsidiary Cambridge, Massachusetts

INDEPENDENT AUDITORS' REPORT

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of The Tor Project, Inc. and Subsidiary (collectively referred to as the “Organization”), which comprise the consolidated statements of financial position as of December 31, 2014 and 2013, and the related consolidated statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Organization's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of The Tor Project, Inc. and Subsidiary as of December 31, 2014 and 2013, and the changes in their net assets and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

The Tor Project, Inc. and Subsidiary Page 2

Other Matter

Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The accompanying consolidated schedule of expenditures of federal awards, as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the consolidated financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated October 27, 2015, on our consideration of the Organization's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization’s internal control over financial reporting and compliance.

Moody, Famiglietti & Andronico, LLP Tewksbury, Massachusetts October 27, 2015

Consolidated Statements of Financial Position The Tor Project, Inc. and Subsidiary

December 31 2014 2013

Assets

Current Assets: Cash and Equivalents $ 1,052,828 $ 849,553 Grants and Contracts Receivable 671,866 785,589 Assets Whose Use is Limited 49,718 51,973 Prepaid Expenses 14,871 10,631 Total Current Assets 1,789,283 1,697,746

Property and Equipment, Net of Accumulated Depreciation - 1,125 Security Deposit 1,367 1,367

Total Assets $ 1,790,650 $ 1,700,238

Liabilities and Net Assets

Current Liabilities: Accounts Payable $ 116,790 $ 175,579 Accrued Expenses 53,900 33,706 Deferred Revenue 93,409 - Other Liability- Assets Whose Use is Limited 49,718 51,973 Total Liabilities 313,817 261,258

Net Assets: Unrestricted 1,476,833 1,428,980 Temporarily Restricted - 10,000 Total Net Assets 1,476,833 1,438,980

Total Liabilities and Net Assets $ 1,790,650 $ 1,700,238

The accompanying notes are an integral part of these consolidated financial statements. 3 Consolidated Statements of Activities The Tor Project, Inc. and Subsidiary

For the Years Ended December 31 2014 2013

Changes in Unrestricted Net Assets: Revenues and Other Support: Grants and Contribution Revenue $ 1,662,498 $ 1,957,725 Contract Revenue 892,251 911,759 Donated Services 427,000 387,500 Net Assets Released from Restriction 10,000 272,161 Other Revenue - 2,138 Total Unrestricted Revenues and Other Support 2,991,749 3,531,283

Expenses: Program Services 2,771,084 2,612,223 Management and General 143,506 177,230 Fundraising 30,954 29,988 Total Expenses 2,945,544 2,819,441

Increase in Unrestricted Net Assets from Operations 46,205 711,842

Non-Operating Income: Interest Income 1,648 1,152 Other Income - 155 Total Non-Operating Income 1,648 1,307

Increase in Unrestricted Net Assets 47,853 713,149

Changes in Temporarily Restricted Net Assets: Net Assets Released from Restriction (10,000) (272,161)

Increase in Net Assets 37,853 440,988

Net Assets, Beginning of Year 1,438,980 997,992

Net Assets, End of Year $ 1,476,833 $ 1,438,980

The accompanying notes are an integral part of these consolidated financial statements. 4 Consolidated Statements of Functional Expenses The Tor Project, Inc. and Subsidiary

For the Years Ended December 31 2014 2013 Program Management Program Management Services and General Fundraising Total Services and General Fundraising Total

Salaries and Related Taxes and Benefits $ 1,160,961 $ 32,380 $ 26,462 $ 1,219,803 $ 1,222,710 $ 59,619 $ 25,047 $ 1,307,376 Contract Services 773,668 3,500 - 777,168 691,196 897 - 692,093 Donated Services 427,000 - - 427,000 387,500 - - 387,500 Travel and Meals 132,854 74,354 1,564 208,772 102,558 86,693 2,727 191,978 Professional Fees 150,066 21,254 1,950 173,270 117,826 13,887 1,205 132,918 Information Technology 33,881 1,212 82 35,175 9,226 986 117 10,329 Advertising and Marketing 23,179 2,823 259 26,261 10,746 1,634 142 12,522 Occupancy 20,386 3,039 279 23,704 17,904 3,139 273 21,316 Bank Fees and Service Charges 10,214 1,523 140 11,877 7,033 1,069 93 8,195 Other Expenses 10,141 756 69 10,966 3,510 669 47 4,226 Research and Development Grants 10,500 - - 10,500 10,000 - - 10,000 Office Supplies 7,018 1,045 96 8,159 8,125 1,235 107 9,467 Program Supplies 6,445 - - 6,445 12,531 675 80 13,286 Conferences 3,001 836 29 3,866 4,592 698 61 5,351 Depreciation 968 144 13 1,125 4,400 669 58 5,127 Insurance 802 120 11 933 2,366 360 31 2,757 Donations - 520 - 520 - 5,000 - 5,000

Total Functional Expenses $ 2,771,084 $ 143,506 $ 30,954 $ 2,945,544 $ 2,612,223 $ 177,230 $ 29,988 $ 2,819,441

The accompanying notes are an integral part of these consolidated financial statements. 5 Consolidated Statements of Cash Flows The Tor Project, Inc. and Subsidiary

For the Years Ended December 31 2014 2013

Cash Flows from Operating Activities: Increase in Net Assets $ 37,853 $ 440,988 Adjustments to Reconcile Increase in Net Assets to Net Cash Provided by Operating Activities: Depreciation 1,125 5,127 Decrease (Increase) in Grants and Contracts Receivable 113,723 (121,632) Increase in Prepaid Expenses (4,240) (2,691) Decrease in Restricted Cash - 1,002 Decrease in Accounts Payable (58,789) (74,738) Increase (Decrease) in Accrued Expenses 20,194 (30,548) Increase (Decrease) in Deferred Revenue 93,409 (10,934) Net Cash Provided by Operating Activities 203,275 206,574

Net Cash Used in Investing Activities: Payment of Security Deposit - (1,367)

Net Increase in Cash and Equivalents 203,275 205,207

Cash and Equivalents, Beginning of Year 849,553 644,346

Cash and Equivalents, End of Year $ 1,052,828 $ 849,553

The accompanying notes are an integral part of these consolidated financial statements. 6 Notes to Consolidated Financial Statements The Tor Project, Inc. and Subsidiary

1. Organization and Significant Accounting either expire by the passage of time or can be Policies: fulfilled and released by actions of the Organization pursuant to those stipulations. Principles of Consolidation: The consolidated financial statements of The Tor Project, Inc. and Subsidiary • Permanently restricted net assets represent (collectively referred to as the “Organization”) include contributions and other inflows of assets whose the accounts of The Tor Project, Inc. (referred to as use by the Organization is limited by donor- “Tor”) and Tor Solution Corporation (the imposed stipulations that neither expire by “Corporation” or the “Subsidiary”). All significant passage of time nor can be fulfilled or otherwise intercompany balances and transactions have been removed by actions of the Organization. As of eliminated in consolidation. December 31, 2014 and 2013, the Organization does not have any permanently restricted net Nature of Organization: Tor is a nonprofit organization assets. dedicated to allowing individuals and groups to protect their internet traffic from analysis. Tor Fair Value: The framework for measuring fair value provides the foundation for a range of applications provides a fair value hierarchy that prioritizes the that allow for the sharing of information over public inputs to valuation techniques used to measure fair networks without compromising privacy. value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for The Subsidiary is a Massachusetts corporation identical assets or liabilities (Level 1 measurements) incorporated on June 24, 2011, on which date Tor and the lowest priority to unobservable inputs (Level became the sole member. In addition, the Subsidiary 3 measurements). The three levels of the fair value was established to design, develop, publish, and hierarchy are described as follows: reproduce computer software or the equivalent for any mode of electronic or internet-based Level 1 - Inputs to the valuation methodology are communications. unadjusted quoted prices for identical assets or liabilities in active markets that the Organization has Method of Accounting: The consolidated financial the ability to access. statements of the Organization have been prepared on the accrual basis of accounting in accordance with Level 2 - Inputs to the valuation methodology include: accounting procedures generally accepted in the United States of America (GAAP). • Quoted prices for similar assets or liabilities in active markets; Classification and Reporting of Net Assets: The Organization is required to report information • Quoted prices for identical or similar assets or regarding its financial position and activities liabilities in inactive markets; according to three classes of net assets: unrestricted net assets; temporarily restricted net assets; and • Inputs other than quoted prices that are permanently restricted net assets. A description of the observable for the asset or liability; and three net asset classes follows: • Inputs that are derived principally from or • Unrestricted net assets represents the portion of corroborated by observable market data by net assets of the Organization that is neither correlation or other means. permanently restricted nor temporarily restricted by donor-imposed stipulations. Unrestricted net If the asset or liability has a specified (contractual) assets include expendable funds available for term, the Level 2 input must be observable for support of the Organization’s operations and substantially the full term of the asset or liability. investments in property and equipment. Level 3 - Inputs to the valuation methodology are • Temporarily restricted net assets result from unobservable and significant to the fair value contributions and other inflows of assets whose measurement. use is limited by donor-imposed stipulations that

7 Notes to Consolidated Financial Statements (Continued) The Tor Project, Inc. and Subsidiary

1. Organization and Significant Accounting Contributions received with donor-imposed Policies (Continued): restrictions that are met in the same year as recognized are reported as revenues of the Cash and Equivalents: The Organization maintains its unrestricted net asset class. Contributions received cash in bank deposit accounts, which, at times, may with donor-imposed restrictions that are met exceed federally insured limits. The Organization has subsequent to the year in which they are received are not experienced any losses in such accounts and reported as revenues of the temporarily restricted net therefore believes it is not exposed to any significant asset class when they are recognized. A risks on cash and equivalents. The Organization has a reclassification to unrestricted net assets is made to cash management program, which provides for the reflect the expiration of such restrictions in the year investment of excess cash balances primarily in money the restriction is met. Contributions of services are market funds, which are valued using Level 1 inputs. reported as revenue and expenses of the unrestricted The Organization considers highly liquid investments net asset class at the fair value of the services received with original maturities of three months or less when only if the services create or enhance a nonfinancial purchased to be cash equivalents. asset or would typically need to be purchased by the Organization if they had not been provided by Concentration of Credit Risk: Financial instruments that contribution, require specialized skills, and are potentially subject the Organization to concentration of provided by individuals with those skills. credit risk consist primarily of cash, cash equivalents Contributions of goods and space to be used in and grants and contracts receivable. The Organization program operations are reported as revenue and maintains its cash and cash equivalents with high- expenses of the unrestricted net asset class at the time credit quality financial institutions. Grants and the goods or space is received. contracts receivable are stated at the amount management expects to collect from outstanding Advertising: The Organization expenses advertising balances. There was no allowance for doubtful costs as incurred. During the years ended December receivables as of December 31, 2014 and 2013. 31, 2014 and 2013, advertising expense amounted to $26,261 and $12,522. Property and Equipment: Property and equipment, which consists of computer equipment, are recorded at Income Taxes: The Organization is a nonprofit cost. Depreciation is computed using the straight-line corporation as described in Section 501(c)(3) of the method over the estimated useful lives of the related Internal Revenue Code and is exempt from federal assets of three years. and state income taxes. The Subsidiary is a disregarded entity for tax purposes. As a result, no Revenue Recognition: Revenues and other support are provision for income taxes is presented in these reported as increases in unrestricted net assets unless consolidated financial statements. However, in certain the use is limited by donor-imposed restrictions. circumstances, the Organization may be subject to Expenses are reported as decreases in unrestricted net federal and state income taxes for profits generated assets. Grant and contract revenues are recognized from unrelated trade or business income. The upon the performance of reimbursable activities when Organization has determined that it does not have persuasive evidence of an agreement exists, delivery of any liabilities associated with unrelated trade or the services has occurred, the fee is fixed and business income. determinable, and collectability is probable. The Organization assesses the recording of uncertain Deferred Revenue: Deferred revenue results from tax positions by evaluating the minimum recognition revenues received for services that have not yet been threshold and measurement requirements a tax performed by the Organization. position must meet before being recognized as a benefit in the consolidated financial statements. The Contributions: Contributions received are recorded as Organization’s policy is to recognize interest and unrestricted, temporarily restricted, or permanently penalties accrued on any uncertain tax positions as a restricted support depending on the existence or component of income tax expense, if any, in its nature of any donor imposed restrictions. consolidated statements of activities.

8 Notes to Consolidated Financial Statements (Continued) The Tor Project, Inc. and Subsidiary

1. Organization and Significant Accounting and a corresponding liability in the amounts of $49,718 Policies (Continued): and $51,973, as of December 31, 2014 and 2013, respectively. No fees are charged by Tor for these The Organization has not recognized any liabilities for services. uncertain tax positions or unrecognized benefits as of December 31, 2014 or 2013. The Organization does not expect any material change in uncertain tax benefits 3. Property and Equipment: within the next twelve months. Property and equipment as of December 31, 2014 and The Organization is currently not under examination 2013 consists of the following: by any taxing authorities and is generally open to 2014 2013 examination for three years from the date of filing. Computer Equipment $ 24,004 $ 24,004 Uses of Estimates: Management has used estimates and assumptions relating to the reporting of assets and Less: Accumulated liabilities and the disclosure of contingent assets and Depreciation 24,004 22,879 liabilities in its preparation of the consolidated financial statements in accordance with GAAP. Actual $ - $ 1,125 results experienced by the Organization may differ from those estimates. Depreciation expense for the years ended December 31, 2014 and 2013 amounted to $1,125 and $5,127, Subsequent Events: Management has evaluated respectively. subsequent events spanning the period from December 31, 2014 through October 27, 2015, the date the consolidated financial statements were available 4. Concentrations: to be issued. The Organization received approximately 75% and 90% of its grants and contribution revenues from two 2. Assets Whose Use is Limited: and three federal grants during the years ended December 31, 2014 and 2013, respectively. As of Tor, along with other sponsors, acts as an agent on December 31, 2014 and 2013, approximately 91% and behalf of the Privacy Enhancing Technology 89% of grants and contracts receivable, respectively, Symposium (the “Conference”) by performing were due from four and three of the federal grants, administrative functions, including custody of the respectively. Conference’s operating cash account and performance of the cash receipts and cash disbursements functions. The Organization received approximately 100% and Funds held for the Conference are segregated from the 94% of its contract revenue from two customers for general assets of Tor and are shown on the the years ended December 31, 2014 and 2013, consolidated statements of financial position as an asset respectively.

9 Notes to Consolidated Financial Statements (Continued) The Tor Project, Inc. and Subsidiary

5. Donated Services: 8. Operating Leases:

Tor receives donated services in various aspects of its Effective September 2013, the Organization was a party operations and programs. The fair value of services as to an operating lease agreement for office space in determined by the donor or by management for the Cambridge, Massachusetts, which expires on August years ended December 31, 2014 and 2013 is as follows: 31, 2018. The lease agreement requires monthly rental payments of $1,400. The operating lease was amended 2014 2013 in December 2014 to include additional office space. The lease agreement amendment requires additional Software Development $ 222,000 $ 210,000 monthly payments of $325 through November 30, 2015. Website Hosting 141,000 127,500

Language Translation 64,000 50,000 Future minimum lease payments due under this non- $ 427,000 $ 387,500 cancelable lease agreement as of December 31, 2014 are as follows:

6. Temporarily Restricted Net Assets: Year Ended December 31, There were no temporarily restricted net assets as of 2015 20,525 December 31, 2014. Temporarily restricted net assets 2016 17,374 as of December 31, 2013 include unexpended 2017 17,808 contributions and grants temporarily restricted by 2018 12,068 donors and amounted to $10,000 restricted for the $ 67,775 purpose of protection of internet traffic.

Rent expense incurred by the Organization under these

lease agreements amounted to $18,229 and $14,201 for 7. Net Assets Released from Restriction: the years ended December 31, 2014 and 2013,

respectively. Net assets were released from donor restrictions by incurring expenses satisfying the restricted purposes, by occurrence of other events specified by donors or by 9. Retirement and Fringe Benefits: the passage of time. Net assets released from restriction during the years ended December 31, 2014 and 2013 The Organization sponsors an IRC Section 408(p), consist of the following: SIMPLE IRA Plan (the "Plan") for all employees, which

allows participants to defer a portion of their salaries 2014 2013 into an investment plan of the participant’s choosing. Purpose Restricted: Once the employee has established an account with a Security Toolkit financial institution the Organization makes a for Journalists $ - $ 132,161 contribution to the Plan each month equal to 2% of the OONI Project - 20,000 employee’s gross salary. Total expenses related to this Protection of plan amounted to $5,700 and $5,670 for the years ended Internet Traffic 10,000 - December 31, 2014 and 2013, respectively. 10,000 152,161

Purpose and Time Restricted: Security Toolkit for Journalists - 120,000

$ 10,000 $ 272,161

10 Notes to Consolidated Financial Statements (Continued) The Tor Project, Inc. and Subsidiary

10. Indemnifications: 11. Commitments and Contingencies:

In the ordinary course of business, the Organization Subsequent to December 31, 2014 the Organization enters into various agreements containing standard finalized an early contract termination with a vendor indemnification provisions. The Organization under which the remaining contract value would be indemnification obligations under such provisions are paid. As termination discussions were in-process prior typically in effect from the date of execution of the to year-end, the liability of $32,500 has been included in applicable agreement through the end of the applicable accrued expenses on the Organization's accompanying statute of limitations. The aggregate maximum consolidated statements financial position. potential future liability of the Organization under such Additionally, subsequent to December 31, 2014, the indemnification provisions is uncertain. As of Organization entered into a severance agreement with December 31, 2014 and 2013, no amounts have been a former employee. The associated liability of $37,500 accrued related to such indemnification provisions. has not been recorded on the Organization's accompanying consolidated statements of financial position and will be recognized as a period expense in the 2015 fiscal year.

11 Consolidated Schedule of Expenditures of Federal Awards The Tor Project, Inc. and Subsidiary

For the Year Ended December 31 2014

Federal Federal Grantor/Pass-Through Grantor/ CFDA Pass -Through Entity Federal Program or Cluster Title Number Identifying Number Expenditures

Major Program:

U.S. Department of State Direct - International Programs to Support Democracy, Human Rights and Labor 19.345 N/A $ 635,122

Pass-Through - Internews Network International Programs to Support Democracy, Human Rights and Labor 19.345 F5047-TOR-00 (23,504)

Total Major Program 611,618

Non-Major Programs:

Research and Development Cluster National Science Foundation Direct - Computer and Information Science and Engineering 47.070 N/A 89,084

Pass-Through - Regents of the University of Minnesota Computer and Information Science and Engineering 47.070 A003482101 22,085

Total Research and Development Cluster 111,169

Total Non-Major Programs 111,169

Total Expenditures of Federal Awards $ 722,787

Notes to the Consolidated Schedule of Expenditures of Federal Awards

Note 1 – Basis of Presentation

The accompanying consolidated schedule of expenditures of federal awards includes the federal grant activity of The Tor Project, Inc. and Subsidiary (“the Organization”), and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements.

12 Consolidated Schedule of Expenditures of Federal Awards (Continued) The Tor Project, Inc. and Subsidiary

Note 2 – Summary of Significant Accounting Policies

Expenditures reported on the consolidated schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A- 122, Cost Principles of Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the consolidated schedule of expenditures of federal awards, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available.

To the Board of Directors The Tor Project, Inc. and Subsidiary Cambridge, Massachusetts

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed In Accordance with Government Auditing Standards

INDEPENDENT AUDITORS’ REPORT

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the accompanying consolidated financial statements of The Tor Project, Inc. and Subsidiary (collectively referred to as the "Organization") which comprise the consolidated statement of financial position as of December 31, 2014, and the related consolidated statement of activities, functional expenses, and cash flows for the year then ended, and the related notes to the consolidated financial statements, and have issued our report thereon dated October 27, 2015.

Internal Control Over Financial Reporting

In planning and performing our audit of the consolidated financial statements, we considered the Organization’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the consolidated financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s consolidated financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified a certain deficiency in internal control that we consider to be a material weakness, listed as item 2014-001 and a significant deficiency, listed as item 2014-002.

The Tor Project, Inc. and Subsidiary Page 2

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Organization’s consolidated financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of consolidated financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and questioned costs as items 2014-001 and 2014-002.

The Tor Project, Inc. and Subsidiary’s Response to Findings

The Organization’s response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The Organization’s response was not subjected to the auditing procedures applied in the audit of the consolidated financial statements and, accordingly, we express no opinion on it.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Organization’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Moody Famiglietti & Andronico, LLP Tewksbury, Massachusetts October 27, 2015

To the Board of Directors The Tor Project, Inc. and Subsidiary Cambridge, Massachusetts

Report on Compliance For Each Major Federal Program and Report on Internal Control Over Compliance Required by OMB Circular A-133

INDEPENDENT AUDITORS’ REPORT

Report on Compliance for Each Major Federal Program We have audited The Tor Project, Inc. and Subsidiary’s (collectively referred to as the “Organization”) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have direct and material effect on each of the Organization’s major federal programs for the year ended December 31, 2014. The Organization’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Organization’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Organization’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Organization’s compliance. Basis for Qualified Opinion on CFDA 19.345 International Programs to Support Democracy, Human Rights and Labor As described in the accompanying schedule of findings and questioned costs, the Organization did not comply with requirements regarding CFDA 19.345 International Programs to Support Democracy, Human Rights and Labor as described in finding number 2014-001 for Allowable Costs. Compliance with such requirements is necessary, in our opinion, for the Organization to comply with the requirements applicable to that program.

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Qualified Opinion on CFDA 19.345 International Programs to Support Democracy, Human Rights and Labor In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the Organization complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on 19.345 International Programs to Support Democracy, Human Rights and Labor for the year ended December 31, 2014. Other Matters The Organization’s response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The Organization’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control over Compliance Management of the Organization is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Organization’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Organization’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified a certain deficiency in internal control that we consider to be a material weakness, listed as item 2014-001 and a significant deficiency, listed as item 2014-002.

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Other Matters The Organization’s response to the internal control over compliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The Organization’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.

Moody, Famiglietti & Andronico, LLP Tewksbury, Massachusetts October 27, 2015

Consolidated Schedule of Findings and Questioned Costs The Tor Project, Inc. and Subsidiary

Year Ended December 31, 2014

I. Summary of Independent Auditors’ Results

Consolidated Financial Statements

Type of auditors’ report issued: Unmodified

Internal control over financial reporting:

• Material weakness identified? X Yes No

• Significant deficiencies identified that are not considered to be material weaknesses? X Yes None Reported

Noncompliance material to consolidated financial statements noted? X Yes No

Federal Awards

Internal control over major program:

• Material weakness identified? X Yes No

• Significant deficiencies identified that are not considered to be material weaknesses? X Yes None Reported

Type of auditors’ report issued on compliance for major programs: Qualified

• Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? X Yes No

Identification of major program:

CFDA Number Name of Federal Program or Cluster

19.345 International Programs to Support Democracy, Human Rights and Labor

Dollar threshold used to distinguish between Type A and Type B programs $ 300,000

Auditee qualifies as low-risk auditee? Yes X No

19 Consolidated Schedule of Findings and Questioned Costs (Continued) The Tor Project, Inc. and Subsidiary

Year Ended December 31, 2014

II. Findings Related to the Consolidated Financial Statement Audit as Required to be Reported in Accordance with Government Auditing Standards:

A. Significant Deficiencies or Material Weaknesses in Internal Control Over Financial Reporting

2014-001 – Allowable Costs

Criteria: Program costs should only be invoiced and drawn down up to the allowable amounts per the budget established in the grant agreement.

Condition: During 2014, the Organization’s allocation of other direct costs to the program exceeded the total budget allowed in the grant agreement by approximately $70,000.

Context: During review of the Organization’s program expense for the program tested it was discovered that the cumulative billed expenses for the other direct expense budget line item had exceeded the budget by approximately $70,000, however the total program expenses in the program budget have not been exceeded.

Questioned Costs: Questioned costs included approximately $70,000 of direct costs billed in excess of amounts allowed.

Effect: The billing of the direct expenses in excess of amounts budgeted has caused the Organization to draw down federal funds in excess of allowable expenses incurred. This advancement of federal funds has not been maintained in accordance with federal cash management criteria. The effect of this error is material to the consolidated financial statements and to the compliance with federal programs under OMB A-133.

Cause: The additional expenses included in the other direct expense line were a direct result of increased time and effort during 2014 on the federal program tested. This resulted in the Organization’s allocation methodology to apply more overhead to the grant program, however the grant program’s budgeted allocation is significantly lower. The Organization did not review the individual budget line items before submitting invoices and drawing down federal funds.

Recommendation: We recommend that the Organization implement a policy to review budget to actual expenses, by federal grant program, on an individual budget line item basis, in order to determine whether funds can be invoiced and drawn down. This will ensure that the Organization is submitting expenses which are in line with the grant program budget and ensure that billings do not exceed allowable costs. Additionally, the Organization may consider requesting an amendment to the award to reallocate resources to different line items.

Views of Responsible Officials and Planned Corrective Actions: Management currently has a system of controls to ensure that total billings on federal contracts are reviewed against total budgets to prevent overbilling. To address the risk of overbilling against individual budget line items, Management is in the process of extending these controls to ensure that reviews of spending to budget are routinely made on a line item basis. In addition, Management is instituting a process of project forecasting to identify likely future line- item overruns, and to ensure that timely budget re-allocation requests can be made where appropriate to prevent these overruns from occuring. In the case of the condition noted, subsequent to year-end, an amendment to the award was requested and was granted such that the direct costs identified above now comply with federal program compliance criteria.

20 Consolidated Schedule of Findings and Questioned Costs (Continued) The Tor Project, Inc. and Subsidiary

II. Findings Related to the Consolidated Financial Statement Audit as Required to be Reported in Accordance with Government Auditing Standards (Continued):

A. Significant Deficiencies or Material Weaknesses in Internal Control Over Financial Reporting (Continued)

2014-002 – Classification of Direct Costs

Criteria: Direct costs should be charged to the appropriate federal programs.

Condition: One instance was noted whereby a direct cost was erroneously charged to an incorrect federal program.

Questioned Cost: None noted in excess of reportable amount of $10,000.

Context: The invoice supporting the direct costs reflected detailed tasks completed for a different federal program.

Cause: An invoice for another federal program was erroneously charged to this federal program, resulting in the incorrect amount of expense being charged to this federal program.

Recommendation: The Organization should implement a review process, specifically for federal programs which requires detailed expense reports to be attached and reviewed, in order to ensure that the proper expenses are being billed to the correct federal program. This review process will ensure that the Executive Director is aware of funds being requested and whether the amounts requested are charged to the correct program and reasonable.

Views of Responsible Officials and Planned Corrective Actions: Management currently has controls in place to ensure that proper expenses are charged to correct programs. Management agrees with the recommendation, and will take steps to periodically review detailed expense reports and associated invoices that are directly charged to federal programs to ensure that funds being requested are reasonable and are charged to the correct program.

B. Compliance Findings

See 2014-001 in Part II, A

III. Findings and Questioned Costs for Major Federal Award Programs to be Reported in Accordance with OMB A-133.

A. Significant Deficiencies or Material Weaknesses in Internal Control Over Compliance

See 2014-001 and 2014-002 in Part II, A

B. Compliance Findings

See 2014-001 in Part II, A

21 Consolidated Schedule of Prior Year Findings and Questioned Costs The Tor Project, Inc. and Subsidiary

Year Ended December 31, 2014

Prior Year Findings:

I. Findings Related to the Consolidated Financial Statement Audit as Required to be Reported in Accordance with Government Auditing Standards:

A. Significant Deficiencies or Material Weaknesses in Internal Control Over Financial Reporting

2013-001 – Cost Allocations

Criteria: Indirect cost allocation methods should be uniformly and consistently implemented to all programs.

Condition: During 2013, the spreadsheet used to allocate employee time across various programs contained an error. The under and overstatement of three employees’ time for various grant programs resulted in a misallocation of employee time and, subsequently, indirect costs. The misallocation, while not material, was not discovered by the Organization’s internal controls.

Context: We tested the accuracy of the employees’ annual time sheet inputs on the Allocation by Program spreadsheet by selecting a sample of employees and viewing each employee’s monthly time card. It was discovered during this review that three employees had time improperly entered into the Allocation by Program spreadsheet, which caused the employees’ time on an annual basis to be over or under reported.

Effect: The Allocation by Program spreadsheet allocates employee salaries and indirect costs based upon the ratio of time spent on each program to annual time work each employee. The date entry errors for the three employees’ time on the spreadsheet resulted in improper salary and, subsequently, indirect cost allocation calculations. The effect of this error was not material to the consolidated financial statements or to compliance with Federal Programs under OMB A-133.

Cause: The input errors were a result of not receiving monthly employee time sheets timely. This delay caused either the employee’s time sheet to never be entered into the Allocation by Program spreadsheet or the improper amount time was entered. These errors were not discovered, as there is no detailed review process for the Allocation by Program spreadsheet.

Recommendation: We recommend that monthly employee time cards be received as close to month end as possible to avoid missed entry. Additionally, we recommend that a detailed review process be implemented to ensure that the manual inputs into the spreadsheet are appropriate.

Views of Responsible Officials and Planned Corrective Actions: Management has a system of controls whereby detailed reviews of total dollars and percentages allocated to federal programs are performed. As no material amounts were misallocated as a result of the input error, the current system of controls did not identify the input error. In order to prevent input errors that serve to generate these allocations, management will institute a second level of detailed review. The detailed review will include agreeing all manual spreadsheet inputs to source documentation. The Organization has contracted a second accounting staff person to assist in this review function.

Resolution: No findings were noted in 2014 compliance testing procedures relative to this finding.

22 Consolidated Schedule of Prior Year Findings and Questioned Costs (Continued) The Tor Project, Inc. and Subsidiary

I. Findings Related to the Consolidated Financial Statement Audit as Required to be Reported in Accordance with Government Auditing Standards (Continued):

2013-002 – Classification of Direct Costs

Federal Program 19.345 International Programs to Support Democracy, Human Rights and Labor

Criteria: Direct costs should be charged to the appropriate federal programs.

Condition: During 2013, an instance was noted where a direct cost was allocated to this federal program incorrectly.

Context: During the audit it was noted that the invoice supporting the direct costs reflected detailed tasks completed for a different federal program. The incorrect posting of this direct cost did not result in an overbilling as the funding is based on certain milestones, which were completed by the Organization prior to billing.

Cause: An invoice for another federal program was erroneously charged to this federal program, resulting in the incorrect amount of expense being charged to this federal program.

Recommendation: The Organization should implement a review process, especially for federal programs which requires detailed expense reports to be attached and reviewed, in order to ensure that the proper expenses are being billed to the correct federal program. This review process will ensure that the Executive Director is aware of funds being requested and whether the amounts requested are reasonable.

Views of Responsible Officials and Planned Corrective Actions: Management has a system of controls that allocates milestone based contracts to the same cost center as there is no cost reimbursement requirement. Both invoices included in this misidentification noted in this finding were recorded in the same cost center, as a result the misidentification was not corrected by management in a timely manner. Management will perform a detailed review of all invoice directly allocated to a particular federal program to ensure that it has been properly identified in our books and records.

Resolution: There was an additional finding noted during 2014. See 2014-002 in Part II, A of the consolidated schedule of findings and questioned costs.

B. Compliance Findings

None

II. Findings and Questioned Costs for Major Federal Award Programs to be Reported in Accordance with OMB A-133.

A. Significant Deficiencies or Material Weaknesses in Internal Control Over Compliance

See 2013-001 and 2013-002 in Part I, A, above.

B. Compliance Findings

None

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